Intel vs Nvidia: Analyzing AI Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: Fool
- Intel's Quarterly Performance: Intel's first-quarter revenue increased by 7% year-over-year to $13.6 billion, with adjusted earnings per share at $0.29, surpassing management's expectations and indicating its potential in the AI sector.
- Data Center Growth: Intel's data center and AI segment revenue rose 22% year-over-year to $5.1 billion, highlighting the CPU's significance in the AI ecosystem, despite reporting a GAAP loss of $3.7 billion.
- Nvidia's Strong Performance: Nvidia's fiscal fourth quarter of 2026 saw a 73% year-over-year revenue surge to $68.1 billion, with data center revenue climbing 75% to $62.3 billion, reinforcing its leadership in the AI market.
- Investor Choice: While Intel shows improvement, it still faces execution risks, whereas Nvidia, with its robust growth and more attractive valuation, emerges as the better choice, although both companies are subject to cyclical market risks.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 199.640
Low
200.00
Averages
264.97
High
352.00
Current: 199.640
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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.
Nvidia's Market Value Surpasses $5 Trillion for the First Time
- Milestone Achievement: Nvidia's stock surged 4.3% to $208.27 on Friday, pushing its market value past $5 trillion for the first time, making it the world's third-largest economy, only behind the U.S. and China, highlighting its significant role in the global economy.
- AI-Driven Growth: Over the past few years, Nvidia's market cap skyrocketed from $1 trillion to $5 trillion, primarily fueled by the world's insatiable demand for artificial intelligence, with its GPUs becoming the default chips for training and running AI models, significantly boosting the company's revenue.
- Revenue Surge: According to Investing.com, Nvidia's sales reached $215.9 billion in fiscal 2026, a 65% year-over-year increase, while revenue for 2024 is projected to be just under $61 billion, indicating the explosive growth of data center orders positively impacting the company's performance.
- Market Influence: Nvidia's valuation accounts for 3.6% of global GDP, surpassing the entire stock markets of Britain, France, and Germany combined, reflecting its dominant position in the global economy and its profound impact on investor confidence.
See More
Intel vs Nvidia: Analyzing AI Competition
- Intel's Quarterly Performance: Intel's first-quarter revenue increased by 7% year-over-year to $13.6 billion, with adjusted earnings per share at $0.29, surpassing management's expectations and indicating its potential in the AI sector.
- Data Center Growth: Intel's data center and AI segment revenue rose 22% year-over-year to $5.1 billion, highlighting the CPU's significance in the AI ecosystem, despite reporting a GAAP loss of $3.7 billion.
- Nvidia's Strong Performance: Nvidia's fiscal fourth quarter of 2026 saw a 73% year-over-year revenue surge to $68.1 billion, with data center revenue climbing 75% to $62.3 billion, reinforcing its leadership in the AI market.
- Investor Choice: While Intel shows improvement, it still faces execution risks, whereas Nvidia, with its robust growth and more attractive valuation, emerges as the better choice, although both companies are subject to cyclical market risks.
See More
Analysis of AI Competition Between Intel and Nvidia
- Intel's Strong Earnings: Intel's first-quarter revenue rose 7% year-over-year to $13.6 billion, with adjusted earnings per share at $0.29, exceeding management's expectations and indicating potential in the AI sector.
- Significant Data Center Growth: Intel's data center and AI segment revenue increased 22% year-over-year to $5.1 billion, highlighting the CPU's importance in the AI era, despite reporting a GAAP loss of $3.7 billion overall.
- Nvidia's Impressive Performance: Nvidia's fiscal fourth quarter of 2026 saw revenue soar 73% year-over-year to $68.1 billion, with data center revenue climbing 75%, solidifying its leadership in the AI market, and management projecting first-quarter 2027 revenue of $78 billion.
- Investment Risk Comparison: While Intel's role in AI infrastructure is becoming more significant, it still faces execution risks, whereas Nvidia's valuation appears more attractive, despite both companies facing cyclical risks in the semiconductor industry.
See More
Oil Prices Surge Past $100: Portfolio Positioning Strategies
- Surge in Oil Prices: Brent crude oil prices have skyrocketed from around $70 to over $100 per barrel, and even with a potential peace deal, prices are expected to remain high due to the lengthy reopening process of the Strait of Hormuz, posing risks to the global economy.
- Impact on Airlines: Airlines have begun canceling future flights due to soaring jet fuel costs, and high gasoline prices may affect consumer spending on discretionary items like travel and entertainment, increasing the risk of a recession.
- Defensive Stock Strategy: Investors are advised to reduce exposure to cyclical stocks and consider adding defensive holdings such as non-discretionary retailers, consumer staples, utilities, and blue-chip dividend stocks to mitigate the impact of high oil prices.
- Oil Stock Investment Opportunities: Investing in oil stocks like Chevron (CVX) is recommended, as the company can cover its capital expenditures and dividends with oil prices averaging $50, while current prices generate substantial free cash flow.
See More
ETF Investment Portfolio Risk Warning
- Concentration Risk: The Invesco QQQ ETF, while an elite performer over the past decade, has become highly concentrated with the 'Magnificent Seven' stocks making up 44% of the index, increasing risk as these stocks have recently traded below their all-time highs.
- Overlap Issues: Investors holding both the Vanguard S&P 500 ETF and Vanguard Total Stock Market ETF face a significant overlap of 87%, which undermines true diversification and may expose them to similar market risks.
- Lack of Regular Rebalancing: A portfolio initially set at 70% stocks and 30% bonds may shift to 80/20 due to stock gains and poor bond performance, increasing risk and straying from original investment goals.
- Importance of Regular Review: Regular portfolio reviews help maintain alignment with investment goals, and rebalancing strategies can facilitate 'sell high, buy low' practices, enhancing long-term returns.
See More
Amazon's Rise in the AI Chip Market
- Market Share Battle: Amazon's custom-designed Graviton CPUs are now utilized by 98% of its large clients, showcasing its strong competitive position in AI computing, with CEO Andy Jassy asserting that Trainium chips could offer a 30% performance improvement over GPU-based training, posing a potential threat to Nvidia's dominance.
- AWS Profit Contribution: Amazon's AWS accounted for 50% of operating profits in Q4 and 66% in Q3, indicating that the rapid growth of AWS is crucial for the company's overall financial health, making it essential for investors to monitor this segment's ongoing expansion.
- Capital Expenditure Plans: Amazon plans to invest $200 billion in capital expenditures this year, primarily for AWS infrastructure, which is expected to drive significant revenue growth once new capacity is online, especially with commitments from major clients.
- Attractive Stock Valuation: Despite a recent uptick in Amazon's stock price, its valuation based on operating cash flow suggests it remains at the lower end of its typical range, making it a smart time for investors to buy, particularly as the company continues to invest in new capabilities.
See More
Nvidia's Market Value Surpasses $5 Trillion for the First Time
- Milestone Achievement: Nvidia's stock surged 4.3% to $208.27 on Friday, pushing its market value past $5 trillion for the first time, making it the world's third-largest economy, only behind the U.S. and China, highlighting its significant role in the global economy.
- AI-Driven Growth: Over the past few years, Nvidia's market cap skyrocketed from $1 trillion to $5 trillion, primarily fueled by the world's insatiable demand for artificial intelligence, with its GPUs becoming the default chips for training and running AI models, significantly boosting the company's revenue.
- Revenue Surge: According to Investing.com, Nvidia's sales reached $215.9 billion in fiscal 2026, a 65% year-over-year increase, while revenue for 2024 is projected to be just under $61 billion, indicating the explosive growth of data center orders positively impacting the company's performance.
- Market Influence: Nvidia's valuation accounts for 3.6% of global GDP, surpassing the entire stock markets of Britain, France, and Germany combined, reflecting its dominant position in the global economy and its profound impact on investor confidence.
See More
Intel vs Nvidia: Analyzing AI Competition
- Intel's Quarterly Performance: Intel's first-quarter revenue increased by 7% year-over-year to $13.6 billion, with adjusted earnings per share at $0.29, surpassing management's expectations and indicating its potential in the AI sector.
- Data Center Growth: Intel's data center and AI segment revenue rose 22% year-over-year to $5.1 billion, highlighting the CPU's significance in the AI ecosystem, despite reporting a GAAP loss of $3.7 billion.
- Nvidia's Strong Performance: Nvidia's fiscal fourth quarter of 2026 saw a 73% year-over-year revenue surge to $68.1 billion, with data center revenue climbing 75% to $62.3 billion, reinforcing its leadership in the AI market.
- Investor Choice: While Intel shows improvement, it still faces execution risks, whereas Nvidia, with its robust growth and more attractive valuation, emerges as the better choice, although both companies are subject to cyclical market risks.
See More
Analysis of AI Competition Between Intel and Nvidia
- Intel's Strong Earnings: Intel's first-quarter revenue rose 7% year-over-year to $13.6 billion, with adjusted earnings per share at $0.29, exceeding management's expectations and indicating potential in the AI sector.
- Significant Data Center Growth: Intel's data center and AI segment revenue increased 22% year-over-year to $5.1 billion, highlighting the CPU's importance in the AI era, despite reporting a GAAP loss of $3.7 billion overall.
- Nvidia's Impressive Performance: Nvidia's fiscal fourth quarter of 2026 saw revenue soar 73% year-over-year to $68.1 billion, with data center revenue climbing 75%, solidifying its leadership in the AI market, and management projecting first-quarter 2027 revenue of $78 billion.
- Investment Risk Comparison: While Intel's role in AI infrastructure is becoming more significant, it still faces execution risks, whereas Nvidia's valuation appears more attractive, despite both companies facing cyclical risks in the semiconductor industry.
See More
Oil Prices Surge Past $100: Portfolio Positioning Strategies
- Surge in Oil Prices: Brent crude oil prices have skyrocketed from around $70 to over $100 per barrel, and even with a potential peace deal, prices are expected to remain high due to the lengthy reopening process of the Strait of Hormuz, posing risks to the global economy.
- Impact on Airlines: Airlines have begun canceling future flights due to soaring jet fuel costs, and high gasoline prices may affect consumer spending on discretionary items like travel and entertainment, increasing the risk of a recession.
- Defensive Stock Strategy: Investors are advised to reduce exposure to cyclical stocks and consider adding defensive holdings such as non-discretionary retailers, consumer staples, utilities, and blue-chip dividend stocks to mitigate the impact of high oil prices.
- Oil Stock Investment Opportunities: Investing in oil stocks like Chevron (CVX) is recommended, as the company can cover its capital expenditures and dividends with oil prices averaging $50, while current prices generate substantial free cash flow.
See More
ETF Investment Portfolio Risk Warning
- Concentration Risk: The Invesco QQQ ETF, while an elite performer over the past decade, has become highly concentrated with the 'Magnificent Seven' stocks making up 44% of the index, increasing risk as these stocks have recently traded below their all-time highs.
- Overlap Issues: Investors holding both the Vanguard S&P 500 ETF and Vanguard Total Stock Market ETF face a significant overlap of 87%, which undermines true diversification and may expose them to similar market risks.
- Lack of Regular Rebalancing: A portfolio initially set at 70% stocks and 30% bonds may shift to 80/20 due to stock gains and poor bond performance, increasing risk and straying from original investment goals.
- Importance of Regular Review: Regular portfolio reviews help maintain alignment with investment goals, and rebalancing strategies can facilitate 'sell high, buy low' practices, enhancing long-term returns.
See More
Amazon's Rise in the AI Chip Market
- Market Share Battle: Amazon's custom-designed Graviton CPUs are now utilized by 98% of its large clients, showcasing its strong competitive position in AI computing, with CEO Andy Jassy asserting that Trainium chips could offer a 30% performance improvement over GPU-based training, posing a potential threat to Nvidia's dominance.
- AWS Profit Contribution: Amazon's AWS accounted for 50% of operating profits in Q4 and 66% in Q3, indicating that the rapid growth of AWS is crucial for the company's overall financial health, making it essential for investors to monitor this segment's ongoing expansion.
- Capital Expenditure Plans: Amazon plans to invest $200 billion in capital expenditures this year, primarily for AWS infrastructure, which is expected to drive significant revenue growth once new capacity is online, especially with commitments from major clients.
- Attractive Stock Valuation: Despite a recent uptick in Amazon's stock price, its valuation based on operating cash flow suggests it remains at the lower end of its typical range, making it a smart time for investors to buy, particularly as the company continues to invest in new capabilities.
See More
