From Nasdaq: 2025-06-21 05:30:00

Intel entered the AI accelerator market with its Gaudi chips, acquired through Habana for $2 billion. Gaudi’s unique architecture aimed to attract customers with competitive pricing. However, despite winning IBM as a customer for its watsonx platform, Intel missed its $500 million sales target for AI accelerators in 2024 due to software ecosystem challenges.

Intel abandoned Falcon Shores, a GPU with Gaudi features set for 2025. The new plan involves Jaguar Shores for rack-scale AI solutions. With new leadership, Intel’s AI strategy remains uncertain, and delays in product launches could impact competitiveness. Meanwhile, AMD announced its Helios rack-scale AI solution, gaining traction with customers like Oracle.

AMD’s upcoming Helios solution and MI400 AI accelerators, scheduled for 2026, offer promising performance with Venice EPYC CPUs and Volcano AI networking cards. While AMD trails Nvidia in the AI chip market, interest in its solutions is growing. As Intel struggles to establish its AI chip business, the company’s foundry business could benefit from the AI chip boom.

The Motley Fool Stock Advisor team recommends 10 stocks for potential investment, excluding Intel. Historical returns from past recommendations highlight the potential for significant gains. With Intel facing challenges in the AI chip market, investors may consider alternative opportunities. Disclosure: Author Timothy Green holds positions in Intel, and The Motley Fool has positions in AMD, Intel, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing.



Read more at Nasdaq: AMD Runs Circles Around Intel With Helios Rack-Scale AI Systems