Intel Corporation (NASDAQ: INTC) is strategically positioning itself to meet the rising demand for AI-capable consumer products by anticipating a shift towards private environments for AI computing needs. Alexis Crowell, Intel’s VP and CTO for Asia-Pacific and Japan, highlighted the company’s vision to integrate AI capabilities across a spectrum of products, spanning from computers to edge computing and software.
Crowell emphasized that as businesses increasingly prioritize privacy and cost efficiency, the demand for traditional data centers may decelerate. This trend aligns with IDC’s forecast, projecting that by the next year, 75% of enterprise-generated data will be processed outside traditional data centers or cloud environments.
Although Intel faces stiff competition from Nvidia Corp (NASDAQ: NVDA) in the AI chip market, particularly in data centers, its data center and AI division reported a notable 5% revenue growth to $3 billion in Q1. To fortify its AI chip offerings, Intel plans to launch the Gaudi 3 chip, anticipated to surpass Nvidia’s H100 and generate $500 million in revenue in the latter half of 2024.
The recent Computex event in Taiwan served as a platform for chip industry leaders, including Intel and Nvidia CEOs, to deliberate on the prospects of AI. While Intel and Advanced Micro Devices Inc (NASDAQ: AMD) vie for dominance in the AI PC market, Nvidia solidified its leading position with robust quarterly earnings.
Intel has set ambitious targets, aiming to ship chips for over 100 million AI PCs by 2025, with projections of over 40 million shipments in 2024 alone. Despite Intel’s strategic initiatives, its stock experienced a decline of over 4% in the last 12 months. Investors seeking exposure to Intel can consider options like ProShares Nanotechnology ETF (NYSE: TINY) and First Trust S-Network Streaming And Gaming ETF (NYSE: BNGE).
As of the last check, INTC shares were trading lower by 0.63% at $30.00. It’s important to note that this content was partially generated with the assistance of AI tools and subsequently reviewed and published by Benzinga editors.