Intel Corporation ( INTC ) fell short of revenue estimates, but topped earnings per share estimates with its first quarter financials. But, Intel ( INTC ) remains confident of its ongoing revival and claims it is on track to catch up to its peers, including Taiwan Semiconductor Manufacturing Company Limited ( TSM ) and even the mightly AI chip leader Nvidia Corporation ( NVDA ) .

First Quarter Highlights

For the March quarter, Intel ( INTC ) reported revenue rose 9% YoY to $12.7 billion, slightly below $12.78 billion that LSEG expected. Intel ( INTC ) narrowed its net loss from last year's comparable quarter when it lost $2.8 billion, or 66 cents per share to $400 million, or 9 cents per share. Adjusted earnings amounted to 18 cents, surpassing LSEG's estimate of 14 cents.

This was Intel's ( INTC ) first report since revealing it had established its chip manufacturing business, Intel Foundry, a separate line item with its own costs and sales. Intel Foundry posted a revenue of $4.4 billion, which Intel ( INTC ) noted was a 10% YoY drop, while operating loss amounted to $2.5 billion.

Client Computing sales, Intel's ( INTC ) biggest business which is making chips for PCs and laptops, reported revenue rose 31% YoY to $7.5 billion.

Data Center and AI business, which include making central processors for servers, reported revenue rose 5% YoY to $3 billion, while Intel ( INTC ) continues to fight for market share against the industry leader, Nvidia ( NVDA ). 

Intel ( INTC ) is working hard to stay relevant in a highly competitive environment.

Intel ( INTC ) is investing heavily in AI. Earlier in April, it revealed it will be releasing a new AI processor for servers. Named Gaudi 3, this will be Intel's ( INTC ) attempt to go after Nvidia ( NVDA ). Intel ( INTC ) plans to challenge Nvidia ( NVDA ) or more precisely, its popular graphic processing units. With Gaudi 3, Intel ( INTC ) promised a 50% on average better inference and 40% on average better power efficiency compared to Nvidia ( NVDA )-made GPUs. Intel ( INTC ) expects its newest offering to bring in more than $500 million in sales during the second half of the year.

Intel ( INTC ) claims it's on track to close the gap despite providing a lackluster second quarter guidance.

For the current quarter, Intel ( INTC ) guided for earnings of 10 cents per share which was significantly below 25 cents per share that analysts on average expected, while revenue of $13 billion at midpoint was below sales of $13.57 billion that analysts expected.

However, CEO Pat Gelsinger confirmed that Intel ( INTC ) remains on track to close the technology gap that is the result of more than a decade of underinvestment and catch up by 2026.

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