From Nasdaq: 2024-04-11 07:05:00

Intel has underperformed compared to other major semiconductor companies, with a mere 86% return over the past decade. However, CEO Pat Gelsinger is leading a turnaround with new AI accelerators like Gaudi, challenging Nvidia’s dominance. Intel also announced partnerships to develop open AI platforms, potentially disrupting the industry.

At Intel Vision 2024 conference, Intel introduced the new Gaudi 3 AI chips, boasting better performance and power efficiency than Nvidia’s H100 at a lower cost. Intel aims to break Nvidia’s dominance with open-source AI solutions, forming partnerships with tech giants and leading the Ultra Ethernet Consortium for AI networking.

While Nvidia’s newer chips may outperform Intel’s Gaudi 3 in the near term, Intel’s leadership in open-source AI solutions poses a long-term threat. With plans to make its foundry profitable by 2030, Intel could rebound if successful. Whether Intel is a buy depends on its execution in AI and foundry advancements.

Investors should consider Intel’s long-term prospects with caution. The Motley Fool’s Stock Advisor team does not include Intel in its 10 best stock picks, signaling potential for other investments to outperform. As Intel navigates its turnaround, investors should closely monitor its progress in AI innovation and foundry profitability.



Read more at Nasdaq: Intel Just Released Its New AI Chip: Time For Nvidia to Worry?