This article first appeared on GuruFocus.
Oct 15 – Intel (NASDAQ:INTC) will roll out a new artificial intelligence chip for data centers next year as it seeks to reclaim market share in the fast-growing AI hardware segment, according to a Tuesday report from Reuters.
Intel stock surged about 2% on Wednesday morning following the news.
The upcoming GPU, called Crescent Island, is built for energy efficiency and optimized for AI inference tasks, Intel Chief Technology Officer Sachin Katti said at the Open Compute Summit. He described it as part of Intel’s plan to offer stronger performance per dollar for enterprise customers.
The launch signals Intel’s renewed effort to keep pace with Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), both of which dominate AI chip development. Katti said the company aims to release new AI data center chips every year to stay competitive.
He also highlighted Intel’s open and modular approach, allowing clients to integrate components from various suppliers, a move designed to offer flexibility in large-scale AI deployments.
The chip program follows Nvidia’s recent $5 billion investment in Intel for a 4% stake, part of a broader partnership between the two firms to jointly develop next-generation PC and data center processors.
INTC: Intel Stock Rises After Unveiling New AI Chip To Challenge AMD
Based on the one year price targets offered by 35 analysts, the average target price for Intel Corp is $26.73 with a high estimate of $43.00 and a low estimate of $14.00. The average target implies a downside of -24.97% from the current price of $35.63.
Based on GuruFocus estimates, the estimated GF Value for Intel Corp in one year is $23.41, suggesting a downside of -34.30% from the current price of $35.63. gf value is gurufocus’ estimate of the fair value that the stock should be traded at. it is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. for deeper insights, visit the forecast page.