As of the close of trading on Wednesday, Intel stock was down 14% over the past 12 months.
David Paul Morris/Bloomberg
Intel stock jumped in late trading Thursday after the chip maker provided a revenue forecast for the September quarter that exceeded expectations.
The company’s CFO told Barron’s late Thursday that there is some “wallet shift” to rivals for their graphics processing unit chips (GPUs) for artificial intelligence. But he said that Intel could also benefit from additional demand for its AI chips and data center processors.
(NVDA) is the dominant leader in the AI GPU market.
Intel on Thursday reported second-quarter adjusted earnings per share of 13 cents, compared to Wall Street’s consensus estimate of a 4 cent loss, according to FactSet.
For the quarter, revenue came in at $12.9 billion, which was above analysts’ expectations of $12.1 billion.
For the current quarter, Intel provided a revenue forecast range of $12.9 billion to $13.9 billion, which, at the midpoint of the rage, was above the consensus of $13.2 billion.
Intel shares were up 5.7% to $36.50 in after hours trading following the earnings report.
In a phone interview with Barron’s, Intel Chief Financial Officer David Zinsner said the company will benefit from the rising interest in artificial intelligence applications, citing demand for its AI accelerator products and server processors. But the executive said there may be some “wallet shift” to GPUs in the second half of this year in the data center segment.
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