Alphabet and Blackstone Launch AI Venture
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 28 minutes ago
0mins
Should l Buy INTC?
Source: Fool
- AI Joint Venture Established: Alphabet and Blackstone have announced the formation of a new AI joint venture, with Blackstone providing an initial $5 billion investment aimed at meeting unprecedented demand for computing power, expected to deliver 500 megawatts of capacity, significantly enhancing market competitiveness.
- Data Center Asset Advantage: Blackstone currently holds over $150 billion in data center assets, and combined with Google Cloud's TPU technology, the new venture will offer robust data processing capabilities to clients, driving widespread adoption of AI technologies.
- Manufacturing Progress Notable: Intel's CEO stated that the foundry business is gaining traction, with monthly yield improvements of 7% to 8% exceeding expectations, showcasing Intel's potential as a high-margin revenue engine that could drive stock performance.
- Consumer Health Data Release: Home Depot rose 1% ahead of the opening bell, with U.S. pending home sales data expected to show a 1.5% month-over-month increase, reflecting resilience in the housing market and consumer confidence, further bolstering market sentiment.
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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: 108.770
Low
20.00
Averages
39.30
High
52.00
Current: 108.770
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.
Trump Discusses U.S. Government Stake in Intel
- Trump's Investment Perspective: In a recent interview, Trump stated he should have 'asked for more' regarding the U.S. government's roughly 10% stake in Intel, a comment that drew market attention and led to a 1% drop in Intel's premarket shares.
- Investment Details: In August 2025, the U.S. government invested $11.1 billion in Intel, purchasing 433.3 million shares at $20.47 each, equating to a 9.9% stake, along with a five-year warrant for an additional 5% of shares, contingent on Intel's ownership of its foundry business.
- Market Reaction and Stock Performance: Despite Trump's claim of generating over $30 billion for the U.S., Intel's shares have surged over 400% in the past year, yet recent declines indicate market concerns regarding government ownership.
- Patriotism and Economic Impact: Trump emphasized that this investment supports American companies, facing criticism for potentially being viewed as 'un-American', yet he believes it will enhance both Intel's growth and the U.S. economy.
See More
Intel and Qualcomm Eye Acquisition of AI Chip Startup Tenstorrent
- Acquisition Interest: Intel and Qualcomm's interest in acquiring AI chip startup Tenstorrent indicates a strategic move by major tech firms to expand in the AI sector, potentially accelerating market competition.
- Valuation Potential: Should Tenstorrent opt for a sale, it could be valued at over $5 billion, reflecting the high demand in the AI chip market and investor confidence, which may attract more potential buyers to the bidding process.
- Funding Negotiations: In addition to sale discussions, Tenstorrent is also in talks with potential investors for a new funding round, indicating the company's pursuit of capital to support its technological development and market expansion, thereby strengthening its position in a competitive landscape.
- Market Dynamics: The engagement between Tenstorrent and Intel/Qualcomm may draw attention from other companies in the industry, especially following Cerebras' recent IPO, suggesting that valuations and investment activities in the AI chip sector could further intensify.
See More
Alphabet and Blackstone Launch AI Venture
- AI Joint Venture Established: Alphabet and Blackstone have announced the formation of a new AI joint venture, with Blackstone providing an initial $5 billion investment aimed at meeting unprecedented demand for computing power, expected to deliver 500 megawatts of capacity, significantly enhancing market competitiveness.
- Data Center Asset Advantage: Blackstone currently holds over $150 billion in data center assets, and combined with Google Cloud's TPU technology, the new venture will offer robust data processing capabilities to clients, driving widespread adoption of AI technologies.
- Manufacturing Progress Notable: Intel's CEO stated that the foundry business is gaining traction, with monthly yield improvements of 7% to 8% exceeding expectations, showcasing Intel's potential as a high-margin revenue engine that could drive stock performance.
- Consumer Health Data Release: Home Depot rose 1% ahead of the opening bell, with U.S. pending home sales data expected to show a 1.5% month-over-month increase, reflecting resilience in the housing market and consumer confidence, further bolstering market sentiment.
See More
Home Depot Sales and Profit Beat Expectations
- Earnings Beat: Home Depot reported earnings of $3.43 per share, surpassing analysts' expectations of $3.41, indicating strong performance in the home improvement sector, which is likely to drive stock price appreciation.
- Revenue Growth: The company's revenue reached $41.77 billion, exceeding the market forecast of $41.52 billion, reflecting sustained consumer demand for home improvement products, which may encourage future investments and expansion.
- Sportswear Performance: Amer Sports reported first-quarter earnings of $0.38 per share, exceeding the FactSet estimate of $0.31, demonstrating brand competitiveness in the market and likely attracting more investor attention.
- AI Investment: Blackstone announced a $5 billion investment in a new AI infrastructure company in partnership with Google, boosting shares of both Blackstone and Alphabet by 0.7%, reflecting strong market confidence in the AI sector.
See More
Nvidia Faces Competitive Pressure in AI Chip Market
- Revenue Growth Acceleration: Nvidia is expected to report a 79% year-over-year revenue increase in the April quarter, reaching $42.97 billion, marking its fastest growth in over a year, driven by massive spending from clients like Microsoft and Meta, indicating robust demand in the AI market.
- Intensifying Competition: With tech giants like Alphabet, Intel, and AMD ramping up investments in AI chips, Nvidia faces increased competitive pressure in the inference market, which could impact its market dominance as demand shifts towards real-time processing capabilities.
- Supply Chain Commitments Surge: Nvidia's spending on supply commitments skyrocketed from $50.3 billion to $95.2 billion between the last two quarters of its fiscal year, although it has largely avoided the impact of a global memory chip shortage, highlighting potential supply constraint risks that need monitoring.
- Margin Pressure: Analysts expect Nvidia's profit margins to reach 74.5% in the first quarter, but rising memory and chip packaging costs, along with the rollout of its Rubin chips, could exert downward pressure on margins later in the year, affecting overall profitability.
See More
Intel CEO Discusses Progress in Foundry Business
- Foundry Business Priority: Intel CEO Lip-Bu Tan emphasized that turning around the foundry business is a top priority, having signed foundry deals with Tesla and Google, and is reportedly in talks with Apple for chip manufacturing contracts that could generate $10 billion in annual revenue, showcasing strong market appeal.
- Growing Customer Demand: Tan confirmed that Intel's foundry business has “multiple customers engaged,” with improvements in its 14A and 18A processes driving increased customer interest, which not only enhances the company's competitive edge but also has the potential to attract more major clients.
- Strong Financial Performance: Intel's recent quarterly revenue rose 7% to $13.6 billion, beating Wall Street estimates by approximately 9%, while data center and AI sales surged 22% to $5.05 billion, indicating robust performance in high-demand sectors.
- Market Sentiment Shift: Despite retail investors maintaining a 'bearish' sentiment towards Intel, the stock has surged 193% year-to-date, reflecting optimistic market expectations for the company's future developments, with investors eagerly anticipating significant announcements.
See More
Trump Discusses U.S. Government Stake in Intel
- Trump's Investment Perspective: In a recent interview, Trump stated he should have 'asked for more' regarding the U.S. government's roughly 10% stake in Intel, a comment that drew market attention and led to a 1% drop in Intel's premarket shares.
- Investment Details: In August 2025, the U.S. government invested $11.1 billion in Intel, purchasing 433.3 million shares at $20.47 each, equating to a 9.9% stake, along with a five-year warrant for an additional 5% of shares, contingent on Intel's ownership of its foundry business.
- Market Reaction and Stock Performance: Despite Trump's claim of generating over $30 billion for the U.S., Intel's shares have surged over 400% in the past year, yet recent declines indicate market concerns regarding government ownership.
- Patriotism and Economic Impact: Trump emphasized that this investment supports American companies, facing criticism for potentially being viewed as 'un-American', yet he believes it will enhance both Intel's growth and the U.S. economy.
See More
Intel and Qualcomm Eye Acquisition of AI Chip Startup Tenstorrent
- Acquisition Interest: Intel and Qualcomm's interest in acquiring AI chip startup Tenstorrent indicates a strategic move by major tech firms to expand in the AI sector, potentially accelerating market competition.
- Valuation Potential: Should Tenstorrent opt for a sale, it could be valued at over $5 billion, reflecting the high demand in the AI chip market and investor confidence, which may attract more potential buyers to the bidding process.
- Funding Negotiations: In addition to sale discussions, Tenstorrent is also in talks with potential investors for a new funding round, indicating the company's pursuit of capital to support its technological development and market expansion, thereby strengthening its position in a competitive landscape.
- Market Dynamics: The engagement between Tenstorrent and Intel/Qualcomm may draw attention from other companies in the industry, especially following Cerebras' recent IPO, suggesting that valuations and investment activities in the AI chip sector could further intensify.
See More
Alphabet and Blackstone Launch AI Venture
- AI Joint Venture Established: Alphabet and Blackstone have announced the formation of a new AI joint venture, with Blackstone providing an initial $5 billion investment aimed at meeting unprecedented demand for computing power, expected to deliver 500 megawatts of capacity, significantly enhancing market competitiveness.
- Data Center Asset Advantage: Blackstone currently holds over $150 billion in data center assets, and combined with Google Cloud's TPU technology, the new venture will offer robust data processing capabilities to clients, driving widespread adoption of AI technologies.
- Manufacturing Progress Notable: Intel's CEO stated that the foundry business is gaining traction, with monthly yield improvements of 7% to 8% exceeding expectations, showcasing Intel's potential as a high-margin revenue engine that could drive stock performance.
- Consumer Health Data Release: Home Depot rose 1% ahead of the opening bell, with U.S. pending home sales data expected to show a 1.5% month-over-month increase, reflecting resilience in the housing market and consumer confidence, further bolstering market sentiment.
See More
Home Depot Sales and Profit Beat Expectations
- Earnings Beat: Home Depot reported earnings of $3.43 per share, surpassing analysts' expectations of $3.41, indicating strong performance in the home improvement sector, which is likely to drive stock price appreciation.
- Revenue Growth: The company's revenue reached $41.77 billion, exceeding the market forecast of $41.52 billion, reflecting sustained consumer demand for home improvement products, which may encourage future investments and expansion.
- Sportswear Performance: Amer Sports reported first-quarter earnings of $0.38 per share, exceeding the FactSet estimate of $0.31, demonstrating brand competitiveness in the market and likely attracting more investor attention.
- AI Investment: Blackstone announced a $5 billion investment in a new AI infrastructure company in partnership with Google, boosting shares of both Blackstone and Alphabet by 0.7%, reflecting strong market confidence in the AI sector.
See More
Nvidia Faces Competitive Pressure in AI Chip Market
- Revenue Growth Acceleration: Nvidia is expected to report a 79% year-over-year revenue increase in the April quarter, reaching $42.97 billion, marking its fastest growth in over a year, driven by massive spending from clients like Microsoft and Meta, indicating robust demand in the AI market.
- Intensifying Competition: With tech giants like Alphabet, Intel, and AMD ramping up investments in AI chips, Nvidia faces increased competitive pressure in the inference market, which could impact its market dominance as demand shifts towards real-time processing capabilities.
- Supply Chain Commitments Surge: Nvidia's spending on supply commitments skyrocketed from $50.3 billion to $95.2 billion between the last two quarters of its fiscal year, although it has largely avoided the impact of a global memory chip shortage, highlighting potential supply constraint risks that need monitoring.
- Margin Pressure: Analysts expect Nvidia's profit margins to reach 74.5% in the first quarter, but rising memory and chip packaging costs, along with the rollout of its Rubin chips, could exert downward pressure on margins later in the year, affecting overall profitability.
See More
Intel CEO Discusses Progress in Foundry Business
- Foundry Business Priority: Intel CEO Lip-Bu Tan emphasized that turning around the foundry business is a top priority, having signed foundry deals with Tesla and Google, and is reportedly in talks with Apple for chip manufacturing contracts that could generate $10 billion in annual revenue, showcasing strong market appeal.
- Growing Customer Demand: Tan confirmed that Intel's foundry business has “multiple customers engaged,” with improvements in its 14A and 18A processes driving increased customer interest, which not only enhances the company's competitive edge but also has the potential to attract more major clients.
- Strong Financial Performance: Intel's recent quarterly revenue rose 7% to $13.6 billion, beating Wall Street estimates by approximately 9%, while data center and AI sales surged 22% to $5.05 billion, indicating robust performance in high-demand sectors.
- Market Sentiment Shift: Despite retail investors maintaining a 'bearish' sentiment towards Intel, the stock has surged 193% year-to-date, reflecting optimistic market expectations for the company's future developments, with investors eagerly anticipating significant announcements.
See More
