Intel collaborates with Exostellar for efficient AI infrastructure; facing challenges with China revenue impact
From Nasdaq: 2025-07-02 10:29:00
Zacks.com features Intel Corporation, Advanced Micro Devices, Inc., and NVIDIA Corp. in its Analyst Blog. Intel collaborates with Exostellar to enhance AI infrastructure, focusing on cost-effective solutions for enterprise-grade AI initiatives. The partnership aims to bring cloud-like agility and efficiency to on-premises or hybrid infrastructure to scale AI initiatives faster and more efficiently.
The collaboration between Intel and Exostellar combines Intel Gaudi AI accelerators with advanced Kubernetes-Native AI Orchestration to enable customers to maximize utilization and streamline compute resources. The Intel Gaudi 3 AI accelerator promises remarkable efficiency, offering faster time-to-train and superior inference throughput, empowering global enterprises to deploy AI at scale with ease.
Intel remains on track with its 5N4Y program to regain transistor performance and power performance leadership by 2025. The company has seen healthy traction in AI PCs and plans to launch Panther Lake and Clearwater Forest chips in 2025 and 2026, respectively. Despite AI chip traction, Intel’s stock has declined 27.9% in the past year, lagging behind peers AMD and NVIDIA.
Earnings estimates for Intel in 2025 have decreased by 84.9% to 28 cents over the past year, while estimates for 2026 have declined by 68.2% to 74 cents. The negative estimate revision indicates bearish sentiments for the stock. Intel seems to lag behind NVIDIA in innovation, facing margin woes due to production shifts and higher costs in Ireland.
China’s move to replace U.S.-made chips with domestic alternatives has significantly impacted Intel’s revenue prospects, as China accounted for over 29% of its total revenues in 2024. Weaker spending across consumer and enterprise markets in China, along with strict export control measures, have led to below-par revenue growth for Intel in the near term. The company faces challenges from over-the-top service providers and price-sensitive competition.
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Intel Corporation, Advanced Micro Devices, Inc., and NVIDIA Corporation are featured in Zacks Investment Research’s Analyst Blog, with Intel facing challenges in the AI hardware ecosystem and revenue growth due to China’s trade tariffs and margin woes. The company is navigating a bumpy road ahead with aggressive competition in the industry.
Read more at Nasdaq: The Zacks Analyst Blog Highlights Intel, AMD and NVIDIA