Intel (INTC) is set to report first-quarter earnings after the bell Thursday, with investors watching for data center and 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) revenue growth at the technology company, along with any updates on its foundry business.

Analysts project Intel's revenue to be $12.94 billion for the first quarter of 2024, down from the previous quarter, but higher than the same period in 2023, according to estimates compiled by Visible Alpha. Historically, Intel has experienced a seasonal decline in the first quarter.

Intel is expected to swing to a loss of $454.86 million or 13 cents per share, down from net﷽ income of $2.67 billion in the fourth quarter or 63 cents per share, though narrowing significantly from a loss of $2.77 billion or 66 cents per share in the same period the year before. Adjusted, analysts expect Intel would post net income of $593.34 million or 14 cents per share, with both representing a decline from the prior quarter but a turnaround from losses in the year-ago period.

Key Metric: Data Center and AI Revenue

Intel also will report its data-center and AI revenue for the first quarter, which could provide insight into customer demand for these products.

UBS (UBS) analysts wrote that "demand signals for traditional servers have turned favorable following a prolonged period of muted/declining spend" with 澳洲幸运5官方开奖结果体彩网:Dell Technologies (DELL), Advanced Micro Devices (AMD), and Micron Technology (MU) reporting a rebound in demand.

The analysts said that they expect Intel's data-center and AI units to rise 6% from the quarter prior, but remain flat 澳洲幸运5官方开奖结果体彩网:year-over-year. UBS suggested "some of the demand tailwind is attributable to hyperscale customers tapering growth on AI server spend and diverting capital to traditional compute over the next couple of quarters" before Nvidia's (NVDA) 澳洲幸运5官方开奖结果体彩网:Blackwell platform expected to ship later in 2024.

Intel has struggled to keep up with peers like Nvidia and AMD amid the AI boom. The company recently unveiled its latest AI chip, the Gaudi 3 AI accelerator, which Intel claims outperfo🍸rms Nvidia's H100.

CFRA analyst Angelo Zino told Investopedia that his firm doesn't view "Intel being a threat for Nvidia" in the near future, but noted that "it's another option out there" for customers. The "long-term story for Intel continues to be on the foundry side of things" because the company is not producing "leading-edge AI chips" and has "clearly fallen behind," and is now playing a difficult game of catch-up with its competitors, Zino added.

Business Spotlight: Foundry Business

Intel recently 澳洲幸运5官方开奖结果体彩网:announced a new rep🦄orting structure under which it will report financials for its foundry or semiconductor manufacturing business separately from its other segments as part of the company's efforts to operate its foundry business as a more independent unit.

The new structure 澳洲幸运5官方开奖结果体彩网:disclosed widening losses in its foundry business. The company also will provide foundry revenue in its first-quarter report, which could allow investors to gauge key metrics for t𒊎he semiconductor manufacturing business.

Bank of America (BAC) analysts said that Intel's foundry business' ability to be profitable in a competitive environment plays a role, among other factors, in the bull and bear cases for the stock.

UBS analysts wrote that Intel's foundry losses are "not entirely unexpected," but confirmed that the 澳洲幸运5官方开奖结果体彩网:chipmaker's costs are higher than competitors.

They said that UBS "remain[s] optimistic that profitability will improve as the company transitions away from structural cost challenges," but noted that they are "cognizant that most of the profitability improvement only materializes in the 2027+ timeframe."

Intel ꩵshares were up 1.6% at $35.07 as of 2:30 p.m. ET Thursday ahead of its earnings report, and have lost about 30% so far this year.

UPDATE—April 25, 2024: This article has been updated to reflect more recent unadjusted analyst estimates and share price information.