Generative AI Market Expected to Reach $890.6 Billion by 2032
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy INTC?
Source: Fool
- Market Growth Potential: According to MarketsandMarkets.com, the generative AI market is projected to surge from $71.4 billion in 2025 to $890.6 billion by 2032, reflecting a compound annual growth rate of 43.4%, indicating significant investment opportunities in this sector.
- ETF Investment Options: Investors can gain diversified exposure to generative AI-related companies through thematic ETFs like the VanEck Semiconductor ETF, which holds 25 semiconductor firms, with the top five holdings comprising nearly half of the fund's weight, providing quick access to industry leaders.
- Broad Semiconductor Coverage: The State Street SPDR S&P Semiconductor ETF offers a balanced investment in 43 companies, aiming to mitigate risks from large firms through an equal-weight strategy, and has shown a robust 41% increase over the past 12 months, indicating solid return potential.
- Focus on U.S. Market: The iShares Semiconductor ETF concentrates on U.S. semiconductor companies, holding 31 firms, and has risen 56% in the past year, with an expense ratio of 0.34%, making it an attractive option for investors looking to minimize foreign exposure.
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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: 46.180
Low
20.00
Averages
39.30
High
52.00
Current: 46.180
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, 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.
Intel Stock Rebounds but Fundamentals Lag Behind
- Stock Rebound: Intel's stock nearly doubled in 2025, yet the company's fundamental business metrics remain unhealed, indicating disappointment among long-term shareholders.
- Revenue and Profit Decline: In 2022, Intel's revenue plunged by 20% and net income fell nearly 40%, with a further 80% drop in net income in 2023, reflecting the impact of high inflation and macroeconomic pressures on demand.
- Management Changes: Following $15.9 billion in impairment and $2.8 billion in restructuring charges, Intel's board forced former CEO Pat Gelsinger to resign, appointing Lip-Bu Tan as the new CEO in hopes of revitalizing performance.
- Future Outlook: Despite a rise in gross margin to 34.8% in 2025, Intel reported a GAAP loss of approximately $300 million, as weakness in the PC segment offset gains in data center and AI sales, leaving the success of its rebound uncertain.
See More
Nvidia Sells Arm Stake but Maintains Partnership
- Nvidia's Stake Sale: Nvidia's SEC filing on Tuesday revealed it has offloaded its stake in semiconductor firm Arm, yet this does not signify the end of their relationship, as Arm's shares rose 1.4% in premarket trading on Wednesday.
- Shareholding History: By the end of Q3, Nvidia held 1.1 million shares of Arm valued at $155.8 million, having maintained its stake since 2023 while gradually winding it down towards the end of 2024, indicating a strategic shift in its investment approach.
- Market Reaction: When Arm debuted on Nasdaq in 2023, Nvidia was part of a strategic investment group that collectively purchased $735 million in shares, and although its $40 billion acquisition bid failed due to regulatory hurdles, Nvidia retains a 20-year licensing agreement with Arm, continuing to support its technology.
- Financial Performance: Arm's recent earnings report showed a 26% year-on-year sales increase to $1.24 billion, exceeding analyst expectations, although shares fell in after-hours trading, with analysts noting high operating expenses suggest the company is preparing for long-term demand.
See More
Nvidia Sells ARM Stake, Market Reacts Positively
- Nvidia Reduces ARM Stake: Nvidia gradually reduced its stake in ARM by the end of 2024, holding 1.1 million shares valued at $155.8 million; despite the sell-off, Nvidia's 20-year licensing agreement with ARM remains intact, indicating a long-term partnership.
- ARM Earnings Beat Expectations: ARM reported a 26% year-on-year increase in sales to $1.24 billion in its latest earnings report, surpassing analyst expectations and demonstrating strong momentum in AI projects, although its stock fell in after-hours trading, reflecting cautious market sentiment regarding future guidance.
- Positive Market Reaction: Following its Nasdaq debut, ARM's market cap is approximately $135 billion, and Nvidia's stake reduction did not dampen market confidence, as ARM shares rose 1.4% in premarket trading, indicating investor recognition of its long-term growth potential.
- Morgan Stanley Optimistic: Morgan Stanley has an “overweight” rating on ARM with a price target of $135, representing a premium of over 6% from Tuesday's closing price, reflecting a positive outlook on ARM's future performance, particularly in ongoing investments in AI.
See More
Nvidia Shares Surge on Expanded Meta Partnership
- Meta Expands Commitment: Meta Platforms announced a new deal to purchase tens of billions of dollars worth of Nvidia chips and hardware for its AI needs, further solidifying their decade-long partnership and expected to significantly boost Nvidia's sales growth.
- Portfolio Update: Nvidia disclosed new stakes worth $2.3 billion in Snap and $1.1 billion in Nokia, while also revealing a $7.9 billion stake in Intel, showcasing its strategic positioning and confidence in the semiconductor market.
- Positive Market Reaction: Nvidia shares rose 1.4% in early premarket trading on Wednesday, reflecting market optimism regarding the new agreement with Meta, while Intel's stock also gained 1% due to Nvidia's investment, indicating investor confidence in the semiconductor sector.
- Hedge Fund Turns Bearish: Despite the stock rally, New York-based Stanphyl Capital has taken a short position on Nvidia, arguing that some hyperscalers will announce reduced capex, potentially leading to a significant drop in Nvidia's stock price, highlighting market uncertainty ahead.
See More
Trilogy Metals Reports Weak Earnings, Stock Plummets
- Earnings Loss Escalation: Trilogy Metals reported a net loss of $42.4 million for fiscal 2025, a significant increase from the $8.6 million loss in 2024, indicating a deterioration in financial health that could undermine investor confidence.
- Rising Administrative Costs: The company's general and administrative expenses rose to $1.3 million in 2025 from $1.2 million in 2024, reflecting challenges in cost control that further exacerbate financial pressures.
- Government Investment Opportunity: Despite the poor earnings report, Trilogy signed a letter of intent with the U.S. Department of Defense, expected to secure approximately $17.8 billion in investment at $2.17 per unit, providing crucial funding for future development.
- Negative Market Reaction: Following the disappointing financial results, Trilogy Metals' stock plummeted nearly 13% during the trading session, indicating market concerns about its future prospects and potentially prompting investors to reassess their holdings.
See More
Analysis of the Best AI Stocks for 2026
- Nvidia's Growth Potential: Nvidia is projected to achieve a 57% annual growth rate in fiscal 2026, indicating strong market demand, especially with the anticipated reopening to China, which is expected to further boost its growth.
- TSMC's Market Position: TSMC expects overall revenue to grow nearly 30% in 2026, and from 2024 to 2029, AI-related chip revenue is forecasted to rise at a nearly 60% compound annual growth rate, highlighting its critical role in the AI supply chain.
- Nebius Group's Rapid Expansion: Nebius Group anticipates its annual run rate will surge from $1.25 billion in 2025 to between $7 billion and $9 billion by the end of this year, indicating significant potential in the AI cloud computing market and positioning it as a top stock for 2026.
- Investor Choices: While Nvidia is considered a top investment, analysts have identified 10 other stocks that could yield substantial returns in the coming years, urging investors to make informed decisions.
See More
Intel Stock Rebounds but Fundamentals Lag Behind
- Stock Rebound: Intel's stock nearly doubled in 2025, yet the company's fundamental business metrics remain unhealed, indicating disappointment among long-term shareholders.
- Revenue and Profit Decline: In 2022, Intel's revenue plunged by 20% and net income fell nearly 40%, with a further 80% drop in net income in 2023, reflecting the impact of high inflation and macroeconomic pressures on demand.
- Management Changes: Following $15.9 billion in impairment and $2.8 billion in restructuring charges, Intel's board forced former CEO Pat Gelsinger to resign, appointing Lip-Bu Tan as the new CEO in hopes of revitalizing performance.
- Future Outlook: Despite a rise in gross margin to 34.8% in 2025, Intel reported a GAAP loss of approximately $300 million, as weakness in the PC segment offset gains in data center and AI sales, leaving the success of its rebound uncertain.
See More
Nvidia Sells Arm Stake but Maintains Partnership
- Nvidia's Stake Sale: Nvidia's SEC filing on Tuesday revealed it has offloaded its stake in semiconductor firm Arm, yet this does not signify the end of their relationship, as Arm's shares rose 1.4% in premarket trading on Wednesday.
- Shareholding History: By the end of Q3, Nvidia held 1.1 million shares of Arm valued at $155.8 million, having maintained its stake since 2023 while gradually winding it down towards the end of 2024, indicating a strategic shift in its investment approach.
- Market Reaction: When Arm debuted on Nasdaq in 2023, Nvidia was part of a strategic investment group that collectively purchased $735 million in shares, and although its $40 billion acquisition bid failed due to regulatory hurdles, Nvidia retains a 20-year licensing agreement with Arm, continuing to support its technology.
- Financial Performance: Arm's recent earnings report showed a 26% year-on-year sales increase to $1.24 billion, exceeding analyst expectations, although shares fell in after-hours trading, with analysts noting high operating expenses suggest the company is preparing for long-term demand.
See More
Nvidia Sells ARM Stake, Market Reacts Positively
- Nvidia Reduces ARM Stake: Nvidia gradually reduced its stake in ARM by the end of 2024, holding 1.1 million shares valued at $155.8 million; despite the sell-off, Nvidia's 20-year licensing agreement with ARM remains intact, indicating a long-term partnership.
- ARM Earnings Beat Expectations: ARM reported a 26% year-on-year increase in sales to $1.24 billion in its latest earnings report, surpassing analyst expectations and demonstrating strong momentum in AI projects, although its stock fell in after-hours trading, reflecting cautious market sentiment regarding future guidance.
- Positive Market Reaction: Following its Nasdaq debut, ARM's market cap is approximately $135 billion, and Nvidia's stake reduction did not dampen market confidence, as ARM shares rose 1.4% in premarket trading, indicating investor recognition of its long-term growth potential.
- Morgan Stanley Optimistic: Morgan Stanley has an “overweight” rating on ARM with a price target of $135, representing a premium of over 6% from Tuesday's closing price, reflecting a positive outlook on ARM's future performance, particularly in ongoing investments in AI.
See More
Nvidia Shares Surge on Expanded Meta Partnership
- Meta Expands Commitment: Meta Platforms announced a new deal to purchase tens of billions of dollars worth of Nvidia chips and hardware for its AI needs, further solidifying their decade-long partnership and expected to significantly boost Nvidia's sales growth.
- Portfolio Update: Nvidia disclosed new stakes worth $2.3 billion in Snap and $1.1 billion in Nokia, while also revealing a $7.9 billion stake in Intel, showcasing its strategic positioning and confidence in the semiconductor market.
- Positive Market Reaction: Nvidia shares rose 1.4% in early premarket trading on Wednesday, reflecting market optimism regarding the new agreement with Meta, while Intel's stock also gained 1% due to Nvidia's investment, indicating investor confidence in the semiconductor sector.
- Hedge Fund Turns Bearish: Despite the stock rally, New York-based Stanphyl Capital has taken a short position on Nvidia, arguing that some hyperscalers will announce reduced capex, potentially leading to a significant drop in Nvidia's stock price, highlighting market uncertainty ahead.
See More
Trilogy Metals Reports Weak Earnings, Stock Plummets
- Earnings Loss Escalation: Trilogy Metals reported a net loss of $42.4 million for fiscal 2025, a significant increase from the $8.6 million loss in 2024, indicating a deterioration in financial health that could undermine investor confidence.
- Rising Administrative Costs: The company's general and administrative expenses rose to $1.3 million in 2025 from $1.2 million in 2024, reflecting challenges in cost control that further exacerbate financial pressures.
- Government Investment Opportunity: Despite the poor earnings report, Trilogy signed a letter of intent with the U.S. Department of Defense, expected to secure approximately $17.8 billion in investment at $2.17 per unit, providing crucial funding for future development.
- Negative Market Reaction: Following the disappointing financial results, Trilogy Metals' stock plummeted nearly 13% during the trading session, indicating market concerns about its future prospects and potentially prompting investors to reassess their holdings.
See More
Analysis of the Best AI Stocks for 2026
- Nvidia's Growth Potential: Nvidia is projected to achieve a 57% annual growth rate in fiscal 2026, indicating strong market demand, especially with the anticipated reopening to China, which is expected to further boost its growth.
- TSMC's Market Position: TSMC expects overall revenue to grow nearly 30% in 2026, and from 2024 to 2029, AI-related chip revenue is forecasted to rise at a nearly 60% compound annual growth rate, highlighting its critical role in the AI supply chain.
- Nebius Group's Rapid Expansion: Nebius Group anticipates its annual run rate will surge from $1.25 billion in 2025 to between $7 billion and $9 billion by the end of this year, indicating significant potential in the AI cloud computing market and positioning it as a top stock for 2026.
- Investor Choices: While Nvidia is considered a top investment, analysts have identified 10 other stocks that could yield substantial returns in the coming years, urging investors to make informed decisions.
See More
