Analysis of Downstream Winners in AI Trade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2026
0mins
Should l Buy INTC?
Source: Yahoo Finance
- Strong Earnings Growth: The latest earnings reports indicate that overall market earnings growth exceeds 15%, which allows the market to maintain an upward trend despite geopolitical pressures, reflecting strong economic resilience and investor confidence.
- AI Trade Remains Stable: Microsoft and Google's backlog exceeds $1 trillion, indicating robust demand in the AI sector that supports growth potential for related companies like Broadcom and Marvell, further solidifying market confidence in the AI trade.
- Optimistic Outlook for Dell: Dell is projected to achieve 25% earnings growth by 2027, with a current P/E ratio of 12, indicating that its stock remains attractive despite a 60% price increase this year, driven by rising server demand.
- Clear Supply Chain Advantage: Dell has a competitive edge in selling servers to tier two cloud service providers and enterprise customers, particularly in materials and supply chain management, which will further enhance its market position and competitiveness.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 109.620
Low
20.00
Averages
39.30
High
52.00
Current: 109.620
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company's segments include Intel Products, Intel Foundry, and All Other. Its Intel Products comprise Client Computing Group (CCG) and Data Center and AI (DCAI). CCG delivers platforms and processors that power PCs and edge devices, enabling enhanced performance, connectivity and user experience for consumer and commercial markets with capabilities that also support retail, industrial robotics and AI ecosystems at the edge. DCAI delivers workload-optimized solutions based upon its x86 architecture for data centers, including CPUs, AI accelerators, NICs, IPUs and custom ASICs, enabling performance and scalability for cloud, enterprise, telecommunication and HPC environments. The Intel Foundry segment comprises technology development, manufacturing and foundry services, developing new semiconductor process technologies and advanced packaging technologies. All Other segments include Mobileye and Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Estimated Total Cost: Government filings indicate that if additional phases of the semiconductor production facility are completed, the total cost could reach approximately $119 billion, which would have profound implications for the semiconductor industry.
- Potential Gains for Intel: Wedbush analysts noted that if the project proves successful, it would positively impact Intel's 14A process, although the exact relationship between Intel and Tesla/SpaceX remains somewhat unclear.
- Risks and Challenges: Despite the promising outlook, analysts caution that building and owning a fab to support internal requirements is an expensive proposition that has become increasingly difficult to justify, especially when many products are not yet finalized.
See More
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- Market Capitalization Surge: The global semiconductor industry has added approximately $3.8 trillion in market capitalization over the past six weeks, driven by an insatiable demand for computing power from AI companies, particularly for new agentic AI models that operate continuously.
- Stock Performance Highlights: Intel shares have skyrocketed 239% this year, marking its first record in 26 years, while Sandisk shares have surged 558%, indicating a rebound in demand for traditional CPUs and memory chips, reflecting a robust market recovery.
- Strong Profit Expectations: Micron Technology is projected to generate $77 billion in operating profit this year, a significant turnaround from its 2023 losses, underscoring that demand for memory chips consistently outstrips supply, thereby reinforcing manufacturers' profitability.
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See More
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- Inflationary Pressures: Inflation hit 3.3% in March, largely driven by high energy costs, with average gasoline prices exceeding $4.50 per gallon, significantly up from last year, which will impact consumer spending and subsequently suppress crypto investment.
- Bitcoin Market Performance: Bitcoin's price is fluctuating under the dual pressures of high oil prices and inflation; although it recently rebounded to $80,000, the high-interest rate environment diminishes its appeal as investors gravitate towards safer assets like Treasury bonds.
- Long-Term Investment Outlook: Despite short-term challenges, institutional investment remains strong, bolstering Bitcoin's legitimacy, while regulatory clarity is gradually improving and blockchain adoption is increasing, suggesting a positive outlook for Bitcoin over the next decade.
See More
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- Contract Revenue Surge: The company signed over $40 billion in new commitments during the quarter, boosting its contracted revenue backlog from $66.8 billion to $99.4 billion, with 36% expected to convert to revenue within two years, highlighting strong demand for AI infrastructure.
- Rising Capital Expenditures: CoreWeave's capital expenditures hit $6.8 billion in the quarter, with management raising full-year guidance to $31 billion to $35 billion, reflecting high investment in infrastructure despite the pressure on short-term profitability.
- Widening Net Loss: The first-quarter net loss expanded to $740 million, up from $452 million in the previous quarter, revealing structural challenges faced during rapid expansion, prompting investors to monitor the company's long-term profitability prospects.
See More
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- Helium Supply Disruption: The Ras Laffan facility in Qatar, one of only two capable of producing semiconductor-grade helium, was impacted by Iranian drone strikes and may not be fully operational for months, posing a significant threat to chip manufacturers who rely on helium for critical processes.
- U.S. Chipmaker Advantage: U.S.-based semiconductor foundries primarily source helium from domestic and Algerian suppliers, and the recent supply chain disruption is expected to accelerate reshoring efforts, thereby strengthening their market position in the global semiconductor landscape.
- Intel's Turnaround: As the largest chip manufacturer in the U.S., Intel has begun high-volume production of its 18A process node at its Ocotillo campus in Arizona, which offers up to 15% better performance per watt and 30% improved chip density, positioning it to regain market share from competitors like TSMC.
- TSMC's Expansion Plans: TSMC has announced an increase in its total U.S. investment to $165 billion to fund new fabs in Arizona, and despite the helium crunch, its diversified supply chain and helium recycling systems provide a competitive edge over many rivals, particularly those in South Korea reliant on Qatari helium.
See More
U.S. Semiconductor Industry Benefits from Helium Crisis
- Helium Supply Crisis: The ongoing helium supply disruption, with Qatar providing a third of the global supply, has been exacerbated by drone strikes on the Ras Laffan facility, which is crucial for semiconductor-grade helium, putting pressure on chipmakers who rely on helium for wafer cooling and photolithography.
- Intel's Market Opportunity: Intel's recent partnerships with Tesla and Google, leveraging its 18A process node's performance advantages, are expected to help regain market share in the semiconductor sector, particularly as U.S. production reshoring accelerates, potentially increasing its market share from below 5%.
- TSMC's Investment Expansion: Taiwan Semiconductor Manufacturing Company (TSMC) plans to invest $165 billion in the U.S. to build three new fabs and an R&D center, and despite facing helium supply challenges, its diversified supply chain and inventory management position it advantageously in the expanding U.S. market.
- Strategic Government Support: The U.S. government's $11.1 billion investment in Intel aims to promote semiconductor production reshoring, reducing reliance on external supply chains, which not only enhances Intel's competitiveness but also lays a foundation for the stable development of the entire industry.
See More
