Intel Corp CEO Pat Gelsinger said the worst of a sales slump has passed and struck a bullish tone about the chipmaker’s prospects for the rest of the year and beyond. Investors are waiting to see proof that the company can regain dominance in the semiconductor industry.

The key to winning them over will be Gelsinger’s ability to lure back some of the largest companies in technology -- cloud giants like Amazon.com Inc and Alphabet Inc’s Google -- whose purchases of server chips for data centres have been a main engine of Intel’s profit and growth.

While demand for Intel’s server processors -- its most lucrative business -- picked up in the second quarter from the first, investors fretted that the division’s 9% year-over-year decline in sales may signal a long road to recovery. Intel’s Xeon chips, some of which sell for as much as a compact car, compete for business with souped-up offerings from Advanced Micro Devices Inc, and increasingly from the internal chip-design efforts of major cloud customers, who are keen to supply their own parts.

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