Thursday, October 14th, 2021
Intel shares are seeing a boost in late Thursday trading after CEO Pat Gelsinger disclosed that the company’s financial performance for the third quarter is surpassing expectations. In its earlier forecast, Intel estimated third-quarter revenue to be between $12.9 billion and $13.9 billion. However, the current results are exceeding the midpoint of this range.
Gelsinger made this announcement during the Deutsche Bank investment conference. He also revealed that Intel has received a substantial prepayment from a customer for “18A” manufacturing capacity. This refers to the development of 1.8 nanometer production lines that will be used to produce cutting-edge chips.
With the prepayment received, Gelsinger indicated that Intel is expediting the construction of its new chip fabrication facility in Arizona. According to him, all the pieces are falling into place, and this customer prepay serves as a clear indication of momentum for 18A and its associated manufacturing capacity.
Gelsinger did not disclose the identity of the customer who made the prepayment.
In recent times, Intel has been actively expanding its foundry business by manufacturing chips for other device companies. As part of this strategic approach, the company is currently building new fabs in Arizona and Ohio.
During the conference session, Gelsinger addressed concerns regarding the increasing demand for Nvidia GPUs in AI applications potentially impacting demand for Intel’s processors. He emphasized that Intel will also be competing in the GPU market and highlighted that the AI trend will present opportunities for Intel’s CPU chips.
As of today, Intel shares have gained 1.8%, reaching $35.15.