Intel CEO Lip-Bu Tan confirms a new GPU initiative led by chief GPU architect Eric Demers and executive Kevork Kechichian. Intel’s AI story expands beyond CPUs. Intel shares rise 4% on news. Intel is a semiconductor company with a market cap of $243 billion. Stock has risen significantly over the past year.

Intel’s Q4 revenue down 4% YoY at $13.7 billion, beats EPS expectations. Full-year revenue flat YoY at $52.9 billion. Tan warns of supply constraints impacting Q1 2026 results. GPU announcement signals long-term commitment. Analysts divided on Intel stock future, with a consensus “Hold” rating and a mean price target of $44.74.

Intel aims to enter the GPU space dominated by Nvidia and AMD. The hiring of Demers from Qualcomm is seen as a positive move. Analysts believe recent stock run has priced in optimism. Bull case focuses on advanced process nodes, foundry customers, and GPU sales potential. Bear case highlights high capital intensity and low margins against Nvidia’s AI software lead.

Read more at Yahoo Finance: Intel Just Announced That It Will Make GPUs. Should You Buy INTC Stock Here?