Intel heads into its April 23 earnings with rising investor expectations , but the key question remains whether AI-driven CPU demand can offset ongoing margin weakness . Revenue Stable, But Margins Under Pressure Intel is expected to deliver Q1 revenue around US$12.4 billion , slightly above the midpoint of its guidance range. However, the real concern lies in profitability: Gross margin guided at 34.5% , down from 39.2% a year ago EPS near breakeven (~US$0.00) vs US$0.13 last year This highlights continued pressure from costs, utilisation, and product mix , despite improving demand signals. AI CPUs: A Key Growth Driver Intel’s near-term bullish case centers on AI-related CPU demand , particularly its Xeon processors. A key development is its partnership with Alphabet , which reinforces: Intel’s role in AI data centre infrastructure Growing demand for AI inference and general-purpose computing Investors will watch c...
Tencent Enters AI Speed Race
- Tencent has launched its latest AI model, Hunyuan Turbo S, claiming it can respond to queries faster than DeepSeek’s R1—one of the most widely adopted AI models globally.
- The tech giant says Turbo S can generate answers in under a second, setting it apart from models like DeepSeek R1 and Hunyuan T1, which require more processing time before responding.
Performance and Competition
- Turbo S reportedly matches DeepSeek-V3 in fields like knowledge, mathematics, and reasoning.
- DeepSeek-V3 has already surpassed OpenAI’s ChatGPT in app store downloads, adding pressure on Tencent and other Chinese tech firms to accelerate AI advancements.
- DeepSeek did not immediately respond to Tencent’s performance claims.
China’s AI Arms Race Intensifies
- DeepSeek’s rapid global success, particularly its adoption in Silicon Valley, has forced Chinese tech giants into a race to enhance their AI models.
- Last month, Alibaba launched Qwen 2.5-Max, claiming it outperforms DeepSeek-V3 across various benchmarks.
- Tencent has also reduced Turbo S’ usage costs significantly, a direct response to DeepSeek’s open-source, low-cost strategy that has disrupted AI pricing in China.
What’s Next?
- With China’s AI firms aggressively pushing new models, pricing wars and rapid iterations are expected to continue.
- As Tencent, Alibaba, and DeepSeek battle for AI supremacy, the global AI market could see faster, more affordable models entering the competition against OpenAI and Google’s Gemini.
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