In its Q2 report, Intel Corporation (NASDAQ: INTC) disclosed yet another delay in shipping its first graphics processing units (GPUs). However, the corporation expects multibillion-dollar revenue from the graphics and high-performance computing area in four years.
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For many years, INTC has sold CPUs with integrated graphics chips with great success. They are used in many laptops, home, and office PCs, and provide adequate performance for some modern games. As a result, Intel’s debut into the discrete (not integrated into the core CPU) GPU market has been long anticipated, and Intel Corporation (INTC) revealed its intention to produce video cards a few years ago.
Initially, deliveries were scheduled to begin in 2020. However, the first, experimental, copies of Intel video cards were issued in 2021 – and only to OEMs and technical firms.
It was expected that Intel Corporation (INTC) will sell at least 4 million GPUs in all sectors in 2022. (laptops, PCs, servers). Intel confirmed in a report that this objective will not be attained owing to software difficulties. This was revealed by Intel CEO Pat Gelsinger, who noted that attempts to use existing modified software for integrated graphics processors for new GPUs did not provide the intended results.
Intel Corporation (INTC) was unable to meet the performance and game compatibility requirements. Although the company will introduce three desktop graphics cards in the third quarter, the company’s GPU will require time to perfect.
From a financial standpoint, this is not a major issue because, at the moment, demand for video cards has decreased owing to the decreased appeal of Bitcoin mining. However, Intel Corporation (INTC) may see a large rise in income in the future by joining the most lucrative market of mid-range graphics cards. This exodus might occur as early as 2023. In addition, the business estimates annual sales from the computer and GPU division to be over $10 billion by 2026.
INTC stock has lost -0.91 percent in the last month, -19.91 percent in the last three months, and -26.24 percent in the last six months. INTC’s price volatility was found to be 3.22 percent over the last week, and 2.76 percent over the previous month.
