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On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter. However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion. More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth, with third-quarter revenue declining 10% year-on-year to $3.8 billion. Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?

On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter. However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion. More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth, with third-quarter revenue declining 10% year-on-year to $3.8 billion. Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?

In the AI era, can Intel win a comeback?

Lumentum's performance has significantly increased, establishing the importance of Optical Circuit Switches (OCS) and Co-Packaged Optics (CPO) in AI infrastructure. The company's revenue in the second quarter grew by over 65% year-on-year, and it expects an 85% growth in the next quarter. CEO Michael Hurlston pointed out that the OCS business has a backlog of over $400 million in orders, and the CPO sector has also secured hundreds of millions of dollars in new orders, demonstrating the company's strong momentum in meeting the bandwidth and energy efficiency demands of AI data centers

- The article discusses Lumentum's strong performance, signaling a bright future for the optical industry driven by AI and innovations like Optical Circuit Switch (OCS) technology. 
- It highlights Lumentum's significant order backlog, indicating a shift towards all-optical networking, with expectations for 2026 as a pivotal year for commercializing OCS and Co-packaged Optics (CPO). 
- The analysis suggests that companies with advanced optical components will gain substantial market advantages, potentially leading to a reevaluation of their valuations within the semiconductor landscape.