Businesses have prioritized spending on advanced and speedy artificial intelligence server chips, hurting demand for Intel's central processing units, which have been the mainstay of chip-powering data centres for decades.

Helped by its software, Nvidia dominates the market for AI chips with its powerful graphics processing units and commanded roughly 80% share last year.

Intel's other largest market, PC chips has suffered a difficult two years but has shown signs of life at the beginning of 2024.

While Intel lost $11 billion in stock market value following its results late on Thursday, Nvidia's value grew by $40 billion, lifted by strong results from Microsoft and Alphabet as the two cloud heavyweights race to expand their AI product lineups.

--Reuters--