Intel CEO says ‘the worst is behind us’

After posting two straight quarters of losses, Intel (INTC) returned to profitability in the second quarter. In an interview with Yahoo Finance Live, Intel CEO Pat Gelsinger says he thinks “the worst is behind us at this point and our raise to the guide for Q3 really portends to a more optimistic future.”

One of the big issues for Intel has been the slowdown in PC demand. On that Gelsinger says the company is “expecting nice quarter-on-quarter improvements” in that business, partly due to inventory adjustments.

When it comes to AI, Gelsinger explains there are a couple of reasons why Intel’s name isn’t mentioned much in the conversation. One of the reasons Gelsinger gives is that “we haven’t been as aggressive out of the chute as we should’ve been.” Gelsinger says the company has to prove itself because “we have a clear market leader who is executing very well.” Gelsinger says rival Nvidia (NVDA) “has done a good job in this space. They’ve really led the way and I like to say, they worked super hard and they got lucky.” However, Gelsinger notes the AI space is still “fairly young” and there is still “a lot of opportunity” for Intel.