Intel’s stock has surged 93% in three months with new AI strategies and partnerships, targeting AI inference tasks with Crescent Island chips. Despite trading at a fraction of rivals’ price-to-sales ratios, Intel shows upside potential for new investors in 2025. The company is revamping its AI strategy, offering products tailored for inference tasks and delivering real-time results from generative AI systems.

With the recent stock surge, Intel is finding buyers for AI-related products and services, including potential collaboration with Tesla for custom AI chips. Intel includes AI features in some PC and server chips, expecting to ship 100 million AI-enhanced PC chips by the end of 2025. Collaborating with Nvidia on custom data center processors and for consumer-level desktops could help Intel recover lost customers to AMD.

Intel’s AI recovery has just begun, with long-lasting opportunities emerging that may take years to deliver cash profits. Despite high valuation ratios based on profits, Intel’s stock looks affordable on a price-to-sales basis compared to rivals. The struggling chip giant is getting back on its feet, and investors could see market-beating returns as the recovery plays out. Consider the Motley Fool’s top 10 stocks for investors to buy now, excluding Intel, for potential monster returns in the coming years.

Read more at Nasdaq: This Under-the-Radar AI Stock Just Soared 93%: Is It Too Late to Buy?