Intel’s Unique Position in AI
How is the AI industry going to develop in the coming years? It’s a rather pressing question, really. Major tech companies are investing heavily in AI data centers with the belief that future AI models will need more computing power. At the same time, AI is becoming capable of a wide variety of tasks—from writing software code to performing intricate investigations.
It might come as a surprise, but if you had $1,000 to invest, Intel could be a smart choice in the AI stock market right now. Here’s why:
Two Paths for Success
Intel has faced challenges in gaining ground in the AI training sector, where companies like Nvidia have a stronghold with their powerful data center GPUs. However, Intel has two potential avenues to capitalize on the AI boom, depending on how the market evolves.
If AI computing continues primarily in cloud data centers, Intel’s foundry business could be crucial in producing the significant number of AI chips needed. While the company has taken time to attract foundry customers, this could shift as they ramp up their Intel 18A process, with the Intel 14A process set to launch in 2027. Intel has some advantages, including innovations in backside power delivery and the use of high NA EUV lithography.
Alternatively, if AI inference—basically running AI models—shifts to devices like PCs, things could look different. Currently, many AI coding applications depend on models operating in the cloud, which leads to ongoing costs. As PCs upgrade with advanced AI processors and additional memory, it feels likely that we’ll see AI coding tools capable of functioning entirely offline.
Current Market Insights
Intel’s forthcoming Panther Lake CPU family is expected to enhance AI processing capabilities. However, it may take some time before we can run advanced AI models on regular laptops. Eventually, though, that’s bound to happen, and Intel could play a significant role in that transition. Even if the AI data center boom slows down, Intel’s PC division might emerge as a significant player in the AI game over the long haul.
So, while it might seem unconventional, don’t overlook Intel in the race for AI supremacy.
