Intel earnings will pit red-hot AI demand against a sluggish PC market

Intel's upcoming earnings report is expected to highlight the contrasting fortunes of the company's two main businesses: artificial intelligence and personal computers. On one hand, the demand for AI-related products and services is surging, driven by the increasing adoption of machine learning and deep learning technologies across various industries. This trend is likely to have a positive impact on Intel's data center and cloud computing segments.

However, the PC market, which was once a mainstay of Intel's business, has been sluggish of late. The global pandemic led to a temporary surge in PC sales, but the market has since cooled down as consumers and businesses alike have delayed upgrades and shifted their focus to other priorities. This slowdown is likely to weigh on Intel's client computing segment, which generates a significant portion of the company's revenue.

As investors await Intel's earnings report, they will be closely watching the company's guidance on the AI and PC markets. Specifically, they will want to know how Intel plans to capitalize on the growing demand for AI-related products and services, and whether the company expects the PC market to recover anytime soon. Additionally, investors will be monitoring Intel's progress in its turnaround efforts, including its plans to regain market share and improve profitability.

Originally reported by marketwatch.com. Expo-News adds analysis for finance & markets readers.