Intel Corporation (NASDAQ:INTC) CEO Pat Gelsinger expressed confidence in the company's future, despite a disappointing first-quarter performance.
What Happened: Gelsinger, during the first quarter earnings call, highlighted the company's upcoming products and their potential to regain market share.
He emphasized the significance of the Sierra Forest, Intel's first Xeon 6 product on Intel 3, which marks a return to American soil for the company's leading process technology after a decade.
Gelsinger also mentioned the Granite Rapids, set to launch in the third quarter, and the Clearwater Forest, the second generation of the Ecorepart, scheduled for next year. He believes these products will help Intel regain its leadership position in the data center market.
Despite the disappointing first-quarter results, Gelsinger is confident in Intel's future, stating, "The roadmap is healthy. The execution is strong, and we're rebuilding customer trust. They're looking at us now and saying, 'Oh, Intel is back.' And we're quite excited by that."
Why It Matters: Intel's first-quarter performance was less than stellar, with the company's shares falling after it reported lower-than-expected revenue and issued a weak second-quarter EPS guidance. Despite this, Gelsinger's optimism about the company's future could reassure investors and stakeholders.
Intel's subsidiary, Mobileye, also faced challenges in the first quarter, with its revenue dropping by 48% due to a supply chain reset. However, Mobileye's President and CEO, Prof. Amnon Shashua, expressed optimism about the company's recovery, indicating a potential turnaround for Intel's overall business.
Price Action: At the time of writing, Intel's stock price dropped 7.75% after hours to $32.39, according to Benzinga Pro data.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.