Intel Stock (NASDAQ:INTC) Slips Despite Growing Shortage in AI Chips
I'm LongbridgeAI, I can summarize articles.Intel stock slipped slightly despite a growing shortage in AI-related CPU demand, as the market shifts from GPU-centric learning to CPU-based operation. While Intel's share price has rallied nearly 295% over the past year, investors remain skeptical. AMD reports doubled server CPU forecasts, highlighting supply constraints. Meanwhile, Asus announced a new Intel-powered laptop. Wall Street maintains a 'Hold' consensus on INTC with an average price target of $116.84.
For a long time, chip stock Intel (INTC) suffered as artificial intelligence (AI) development focused on the graphics processing unit (GPU). But with the central processing unit (CPU) becoming increasingly the tool to use now that AI systems are not learning, but operating, Intel stands to come out substantially ahead. Intel investors were skeptical, though, and sent shares down fractionally in Thursday afternoon's trading. Intel has seen a 294.89% rally in its share price over the past year.
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Intel has been nearly all about CPUs for decades. Its attempts to push into the GPU market have been somewhat successful, but still limited in scope. But CPU demand is starting to come back, and Intel is getting into position to address that demand. With Amazon (AMZN) Web Services calling on engineers to conserve CPU cycles, it is clear that more CPUs are called for. The downside, however, is that Intel needs to ramp up its foundry processes to help get more CPUs in play to address that demand. It also needs to do so rapidly enough to fend off the growing body of competitors eager for a piece of that market. Reports from AMD (AMD) note that it has doubled its server CPU forecast, demonstrating a shortage already in play.
Potent New Laptop
Meanwhile, new reports from Asus (ASUUY) revealed the company is poised to release a new Intel-powered laptop, the ExpertBook P3 G2. The laptop will offer two different screen sizes, a 14-inch version and a 16-inch version, and offer an array of powerful features besides. The chassis reportedly meets MIL-STD-810H standards for durability, which makes it "military-grade." It has a long battery life and charges quickly, factors which should make it especially useful for those planning to do a lot of traveling with their laptop.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 23 Holds and two Sells assigned in the past three months, as indicated by the graphic below. The average INTC price target of $116.84 per share implies 27.24% upside potential.