Intel CEO Pat Gelsinger expressed confidence in Intel’s future during a Yahoo Finance interview, positioning the company for what he describes as one of the greatest turnaround stories. Gelsinger highlighted the company’s focus on ramping up its AI chipmaking, specifically mentioning the introduction of their latest product, the Gaudi3.
This development aligns with the increasing global implementation of AI across various industries, and Gelsinger believes it will significantly contribute to the growth of the semiconductor market. He predicts that the market, currently valued at around $600 billion, could potentially exceed a trillion dollars by the end of the decade, driven by AI innovations.
During the interview, Gelsinger discussed Intel’s current market position and its strategies for future growth. He emphasized Intel’s unique capabilities in leading-edge technologies, which only a few companies worldwide can match. He also pointed out that Intel, being a significant player in the Western world, has significant market value creation potential yet to be realized.
Gelsinger mentioned that the company is still undervalued compared to its peers, despite its progress this year.
Intel’s strategy includes focusing on their IDM 2.0 strategy, which involves manufacturing chips at scale for both Intel and other companies. This approach positions Intel as both a major foundry manufacturer and a fabulous company, manufacturing chips for others while also competing in the same market.
Gelsinger’s vision for Intel involves not only competing in the market but also manufacturing chips for all major players like Nvidia and AMD, in addition to Intel’s own needs.
Gelsinger acknowledged the challenges faced by Intel, including a tough economic cycle and the need for rebuilding execution and technology. Despite these challenges, he remains committed to the turnaround and sees various positive indicators, like good momentum on certain products and the success of their process technology.
He noted the significant inventory adjustments being made by their customers and expressed cautious optimism about market recovery in the second half of the year. Gelsinger also highlighted the importance of making long-term strategic investments, while being more austere in the core business in the near term.
Despite the current challenges, the CEO’s vision and commitment to steering Intel through this turnaround phase appear to be clear and focused, aiming to reclaim and further Intel’s position as a leader in the semiconductor industry.
