Yesterday, 12:09 AM
Intel's AI PC Chips Underperform, "Raptor Lake" Demand Sparks Shortages
Intel's latest AI-focused laptop processors, "Lunar Lake" and "Meteor Lake," have encountered slower-than-anticipated uptake, leading device manufacturers to increase orders for the previous-generation "Raptor Lake" chips. As a result, Intel 7 manufacturing lines, originally intended to scale up production of its newest AI-ready CPUs and transition to newer nodes, are now running at full capacity on "Raptor Lake" output, limiting the availability of both the new and legacy models. In its first-quarter 2025 financial report, Intel recorded revenue of $12.7 billion, essentially flat year-over-year, and a net loss of $821 million. The results fell short of the industry's expectations, and the company's stock declined by more than 5% in after-hours trading.
Management attributed the shortfall to cautious buying patterns among OEMs, who seek to manage inventory in light of ongoing US-China tariff discussions, and to consumer hesitancy to pay higher prices for AI-enabled features that are still emerging in mainstream applications. CEO Lip-Bu Tan outlined plans to reduce operating expenses by $500 million and lower capital expenditures by approximately $2 billion to address these challenges in 2025. He also confirmed that workforce reductions are planned for the second quarter, though specific figures were not disclosed. Looking ahead, Intel intends to focus on strengthening its data-center business, where demand for Xeon processors remains robust, and to prepare for the late-2025 introduction of its Panther Lake platform. The company will also continue efforts to encourage software development that leverages on-device AI, aiming to support wider adoption of its AI-capable hardware.
https://www.techpowerup.com/335926/intel...-shortages
Intel's latest AI-focused laptop processors, "Lunar Lake" and "Meteor Lake," have encountered slower-than-anticipated uptake, leading device manufacturers to increase orders for the previous-generation "Raptor Lake" chips. As a result, Intel 7 manufacturing lines, originally intended to scale up production of its newest AI-ready CPUs and transition to newer nodes, are now running at full capacity on "Raptor Lake" output, limiting the availability of both the new and legacy models. In its first-quarter 2025 financial report, Intel recorded revenue of $12.7 billion, essentially flat year-over-year, and a net loss of $821 million. The results fell short of the industry's expectations, and the company's stock declined by more than 5% in after-hours trading.
Management attributed the shortfall to cautious buying patterns among OEMs, who seek to manage inventory in light of ongoing US-China tariff discussions, and to consumer hesitancy to pay higher prices for AI-enabled features that are still emerging in mainstream applications. CEO Lip-Bu Tan outlined plans to reduce operating expenses by $500 million and lower capital expenditures by approximately $2 billion to address these challenges in 2025. He also confirmed that workforce reductions are planned for the second quarter, though specific figures were not disclosed. Looking ahead, Intel intends to focus on strengthening its data-center business, where demand for Xeon processors remains robust, and to prepare for the late-2025 introduction of its Panther Lake platform. The company will also continue efforts to encourage software development that leverages on-device AI, aiming to support wider adoption of its AI-capable hardware.
https://www.techpowerup.com/335926/intel...-shortages