Intel tumbles as chipmaker falls further behind in AI race

A smartphone with a displayed Intel logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Intel slumped more than 12% on Friday following a bleak first-quarter revenue outlook, as the chipmaker plays catch-up in the AI race while also dealing with a weak PC market.

While AI is driving a boom in the chip sector, Intel seems to be an exception, analysts said. Semiconductor makers that make chips for the heavy data needs for generative AI were among the biggest winners in the stock market in 2023.