Intel Positions for AI Market, Potential Key Winner Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Market Opportunity: Intel has struggled to gain traction in the AI training market, yet its foundry business could capitalize on the surging demand for AI chips in cloud data centers, potentially increasing its market share.
- Technological Edge: Intel's 18A and 14A processes are industry-leading, utilizing backside power delivery and High-NA EUV lithography, which are expected to attract more foundry customers and drive revenue growth.
- Shift in AI Inference: As AI processors and memory in PCs improve, AI inference may gradually shift from the cloud to local execution, positioning Intel's PC business to benefit significantly from this transition and become a key player in the AI market.
- Long-term Outlook: Even if the AI data center boom wanes, Intel's PC business could emerge as a major winner in the AI space, especially with the trend of local execution of AI coding tools gaining momentum.
Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for INTC is 35.61 USD with a low forecast of 20.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
3 Buy
25 Hold
6 Sell
Hold
Current: 37.300
Low
20.00
Averages
35.61
High
52.00
Current: 37.300
Low
20.00
Averages
35.61
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.
