According to reports, Intel CEO Pat Gelsinger (Pat Gelsinger) is seeking to revive its glory through a major business transformation. The company's management today released performance expectations, saying that operating income will increase by 1% this year, and the growth rate in the next few years. The speed will increase (single digit level).

At an investor conference held in San Francisco, Intel said that in 2023 and 2024, the company's operating income will grow by about 5% to 9%. For reference, Wall Street analysts predict Intel's revenue growth will be 1% this year, 3% next year, and 8% in 2024.

Intel CEO Henry Kissinger said at the conference: "I have full confidence in our accelerated growth plans and implementation."

As we all know, the global new crown epidemic has promoted the work-from-home boom, and semiconductor components have penetrated into more hardware products. These two megatrends have driven the global semiconductor market demand. Unfortunately, Intel does not have a good grasp of this opportunity.

Last year, the size of the global semiconductor market grew 26% to a record $556 billion, yet Intel's operating income fell 4%.

In contrast, Intel's competitors are rapidly expanding their businesses. Last year, computer chip maker AMD's revenue soared 68%, while graphics chip giant Nvidia's growth was as high as 61%. According to Wall Street analysts, the two rival companies are expected to grow revenue by more than 25% this year.

At present, a large part of Intel's operating income still comes from the traditional computer processor market, and Intel still occupies a dominant position in the desktop and notebook computer CPU market. Last year, global PC shipments hit a decade high, driven by the work-from-home trend. But some analysts worry that such a sales rebound cannot be sustained. In this market, Intel also faces fierce competition from its old rival AMD, and some traditional CPU purchasers, such as Apple in the United States, are using self-designed processors.

After leaving Intel for about a decade, Kissinger rejoined the company last year to take the helm. At Thursday's investor conference, the company's management briefed attendees on plans to revive Intel's leadership in the semiconductor industry.

Under Kissinger's plan, Intel will invest billions of dollars in new chip factories to compete directly with Taiwan's TSMC and South Korea's Samsung Electronics in outsourced manufacturing. At the same time, Kissinger reorganized the internal engineering technology department, hoping to regain control of the semiconductor technology leader in 2025. In addition, Intel will also enter the graphics processor market, preparing to compete head-to-head with AMD and Nvidia.

On Thursday, Intel said its own graphics processor business will be worth $10 billion by 2025. However, Kissinger also emphasized that another business - foreign chip foundry is only in the preliminary stage. This week, the company announced the acquisition of "High Tower Semiconductor" in an effort to advance its foundry business.

Investors are skeptical about Kissinger's transformation plan. Intel shares have fallen 23% over the past year, lagging other peers in the Philadelphia Stock Exchange Semiconductor Index. In addition, every time Intel releases its quarterly earnings report, the stock price must fall sharply, because investors are not satisfied with the progress of Intel's transformation.

Against this background, Kissinger promised investors that the company's revitalization plan is advancing steadily.

At the conference on Thursday, he said: "Intel's revival train is leaving the platform, and I hope you're all on board."