The Smartest AI Stock to Buy With $1,000 Right Now

Key PointsIntel lost the battle for AI training chips, but it can still be a big AI winner.The foundry business could benefit from a deluge of custom AI chips.As AI inference moves to devices, Intel's AI-enabled CPUs could bring about a sea change in the industry.10 stocks we like better than Intel ›How will the AI industry evolve in the coming years? That's the trillion-dollar question. Tech giants are building massive AI data centers on the assumption that more computing power will be necessary to train and run future AI models. Meanwhile, AI has become capable of tackling a wide range of use cases, from writing computer code to conducting in-depth research.Image source: Intel.This may sound surprising, but Intel (NASDAQ: INTC) may be the smartest AI stock to buy right now if you've got $1,000. Here's why.Two ways to winIntel has already failed to gain traction in the AI training market, where Nvidia's powerful data center GPUs dominate. However, the company has two distinct ways to benefit from the AI boom, depending on which way the industry goes.If AI computing continues to occur mostly in cloud data centers, Intel's foundry business can play a key role in churning out the massive number of AI chips necessary to meet demand. The company has been slow to win foundry customers, but that could change as the Intel 18A process ramps up and the Intel 14A process readies for a 2027 launch. Intel is ahead of the industry in multiple ways, including the use of backside power delivery for Intel 18A and High-NA EUV lithography for Intel 14A.Here's another possibility: AI inference, the act of running AI models, largely shifts to devices like PCs. Today, AI coding tools interface with AI models running in the cloud, incurring ongoing costs. As PCs gain more powerful AI processors and more memory, it's only a matter of time before a capable AI coding tool could run entirely locally.Intel's upcoming Panther Lake CPU family is expected to include increased AI processing power, but it will likely take years before a powerful AI model can run on a laptop. Still, that day will eventually come, and Intel could be a key enabler. Even if the AI data center boom fizzles out, Intel's PC business could be a big AI winner in the long run.It may seem contrarian, but don't count out Intel in the AI race.Should you buy stock in Intel right now?Before you buy stock in Intel, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $505,641!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,143,283!*Now, it’s worth noting Stock Advisor’s total average return is 974% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.See the 10 stocks »*Stock Advisor returns as of December 29, 2025Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Intel and Nvidia. The Motley Fool has a disclosure policy.The Smartest AI Stock to Buy With $1,000 Right Now was originally published by The Motley Fool