Intel Bets Big On AI Revival With New 'Crescent Island' Chip Built To Optimize 'Performance Per Dollar'

Intel Corp. (NASDAQ:INTC) is making a renewed push into the artificial intelligence chip market with the launch of its new "Crescent Island" GPU, a data center processor set to debut next year.Intel Unveils Crescent Island GPU To Boost AI Inference EfficiencyOn Tuesday at the Open Compute Summit in San Jose, Intel announced that the Crescent Island GPU is designed for inference workloads.Intel CTO Sachin Katti said the chip is built to optimize "performance per dollar" and deliver "the best token economics," reported Reuters.The chip will feature 160 gigabytes of slower memory instead of high-bandwidth memory used by rivals Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices Inc. (NASDAQ:AMD).Katti added that Intel aims to release new AI data center GPUs every year to keep pace with its competitors and cloud providers developing in-house AI chips."Instead of trying to build for every workload, our focus is increasingly going to be on inference," Katti said.Nvidia's $5 Billion Vote of ConfidenceThe announcement comes weeks after Nvidia disclosed a $5 billion investment in Intel, giving it a roughly 4% stake and making it one of Intel's largest shareholders.Intel CEO Lip-Bu Tan has vowed to restart the company's stalled AI efforts after it paused earlier projects such as the Gaudi and Falcon Shores chips. Bank Of America Downgrades Intel To UnderperformEarlier this month, Bank of America Securities analyst Vivek Arya downgraded Intel to Underperform with a $34 price target, citing weak competitiveness in AI and server CPUs.Arya noted that Intel's market cap recovery reflects improved finances and foundry potential, not real product traction.Intel shares also traded lower Tuesday as broader semiconductor stocks fell amid intensifying U.S.–China trade tensions and new tariff threats.Price Action: Intel shares fell 4.27% on Tuesday but remain up over 76% year to date, according to Benzinga Pro.Intel ranks among the top stocks in Benzinga's Edge Stock Rankings for Momentum, reflecting strong price performance across short, medium and long-term periods. A full analysis, including comparisons with peers and competitors, is available here. Nvidia CEO Jensen Huang Says Intel Spent 33 Years ‘Trying To Kill Us' But Now Calls The Chip Rival A Partner: ‘We're Lovers, Not Fighters' Photo: Tada Images / Shutterstock