Intel is set to announce its fourth-quarter earnings on Thursday, with investors eagerly anticipating the chipmaker’s performance. The focus is expected to be on Intel’s foundry business and the sales figures for its recently launched processors.

Last quarter, Intel reported substantial revenue growth for its foundry business, driven by the artificial intelligence (AI) boom. Analysts believe this trend could continue to bring gains for the company. The upcoming earnings report could potentially impact not only Intel’s stock but also those of its competitors in the semiconductor industry, particularly in response to signs of growing demand for AI.

Analysts project that Intel’s revenue for the latest quarter will be around $15.17 billion, reflecting an increase from the previous quarter and the same period in 2022. Net income is also expected to see a significant rise, estimated to be nearly $1 billion, a sharp increase from $310 million in the previous quarter and a loss of $661 million in the fourth quarter of 2022.

One key metric that investors will be closely monitoring is Intel Foundry Services (IFS). Back in October, Intel shares surged after the chipmaker reported that its foundry business revenue had quadrupled in the third quarter from a year earlier. IFS, which manufactures chips for corporate and government clients, generated $311 million in revenue in the third quarter of 2023, marking a 299% increase from the same period the previous year. Analysts anticipate IFS revenue to rise to $343 billion in the fourth quarter, indicating the potential for long-term growth for Intel amid the AI boom.

Intel’s introduction of a family of Intel Core Ultra processors designed to run AI workloads locally on a PC in the fourth quarter of 2023 has garnered attention. These AI-optimized offerings are positioned to enhance Intel’s competitiveness with industry players such as Nvidia and Advanced Micro Devices, while also making AI technology more accessible to consumers.

Looking ahead, the semiconductor industry as a whole is projected to experience significant growth in 2024. Bank of America Securities analysts have identified Intel as a ‘top pick,’ emphasizing the company’s potential in the evolving landscape. Additionally, the Biden administration’s CHIPS Act grant, aimed at promoting semiconductor manufacturing in the U.S., is expected to particularly benefit Intel compared to its competitors.