Intel (INTC) investors will get a look at the company's artificial intelligence and data center plans at an investor event on Wednesday.
The computing company will host a webinar as investors buzz over the company's potential for AI technology. The chipmaker will also give an update on its plans for its data center segment.
- Intel will provide an update on its AI and data center plans.
- The company has struggled with economic headwinds in the past year.
- AI technology could be a game changer for Intel.
Investors have been increasingly interested in AI after the successful release of the ChatGPT app. Intel has looked to capitalize on the investor buzz by highlighting its processing capabilities, led by the company's Xeon range.
But all eyes are on Intel's chipmaking, which was under pressure in 2022 due to supply chain issues and extended lockdowns in China. The chipmaker recently announced it will build two major manufacturing plants in Arizona for $20 billion.
Intel joined other U.S. chipmaking firms in announcing new manufacturing capabilities after the Biden administration signed the CHIPS Act into law in September 2022. The goal of the new legislation is to make the United States more competitive in the world of semiconductor manufacturing.
“Intel is and will remain a leading developer of process technology, a major manufacturer of semiconductors, and the leading provider of silicon globally,” CEO Pat Gelsinger said.
Investors saw the news as confirmation the company will continue to focus on chip manufacturing despite the challenges of the past year. The company's "Data Center and AI (DCAI)" segment suffered from a 15% drop in revenue year-on-year to $19.2 billion.
Intel has since then committed to a severe cost-reduction strategy.
“In the fourth quarter, we took steps to right-size the organization and rationalize our investments, prioritizing the areas where we can deliver the highest value for the long term,” CFO David Zinsner said on an earnings call. “These actions underpin our cost-reduction targets of $3 billion in 2023, and set the stage to achieve $8 billion to $10 billion by the end of 2025.”