Intel profit plunges 85% as AI chip sales fall behind Nvidia and AMD

PALO ALTO, California -- Intel plans to shed 15,000 jobs after it reported an 85% year-on-year second-quarter profit decline Thursday, two days after rival AMD released blockbuster earnings driven by strong AI chip sales.

Facing growing competition from AMD and Nvidia in the heated race for chips used to power artificial intelligence, Intel has accelerated spending on developing the next-generation chips and building its own fabrication plants, weighing on its bottom line.