Intel (NASDAQ: INTC) is making significant advancements in the field of artificial intelligence (AI), which is set to benefit the company in the long term. The development of new, faster, and more energy-efficient processors and AI chips by Intel will allow it to capitalize on the growing demand for AI-enabled products. The company’s positive outlook, coupled with its low valuation, makes Intel stock a good investment for long-term investors.
In June, Intel unveiled new processors and AI chips that are faster and more energy-efficient than their predecessors. The company also introduced the Gaudi 3 accelerator chips, which are cost-effective compared to competing products. Additionally, Intel demonstrated the first fully integrated optical computing interconnect chiplet, which will enhance machine learning and AI development by providing greater bandwidth and energy savings. These advancements are expected to increase Intel’s revenue and profits from data centers and major companies deploying AI at scale.
Intel’s Gaudi 3 AI chips are being recognized as a top competitor to Nvidia in completing AI workloads quickly. The company has secured agreements with major players such as IBM, Bosch, and Bharti Airtel to purchase Gaudi 3 chips. Furthermore, Intel is leading a consortium developing open-source software that can interface with all AI chips, which would challenge Nvidia’s competitive advantage in managing chips simultaneously.
On the foundry front, Intel is making progress in becoming a leading semiconductor manufacturer. The company has started production of new 3-nanometer chips that support high-performance computing and AI applications, delivering improved performance and efficiency. Intel’s ability to manufacture semiconductors for advanced driver assistance systems in automobiles is also highlighted as a significant opportunity for growth.
The increase in PC sales is expected to further boost Intel’s performance, with global shipments of desktop and laptop computers on the rise. Canalys predicts accelerated growth in the sector throughout 2024, especially with the introduction of AI-powered PCs in the second half of the year. Intel’s role as a key chip supplier for major PC makers positions it well to benefit from the growing demand for AI-enabled devices.
Overall, Intel’s current valuation of 28.5 times future earnings undervalues the company’s long-term potential. With a strong focus on AI, semiconductor manufacturing, and PC sales, Intel is well-positioned for growth in the coming years. Investors may want to consider Intel stock as a part of their long-term investment strategy.
Article Source
https://investorplace.com/2024/06/the-sleeping-giant-awakens-intels-ai-push-signals-a-comeback/