Introduction
Intel (INTC) is set to unveil its latest processors designed for artificial intelligence technology at an event next Thursday, which could enhance the company’s position as a beneficiary of the AI boom alongside competitors like Nvidia (NVDA) and Advanced Micro Devices (AMD).
Powerful, Enhanced AI Processors
The company will showcase new, powerful AI-enhanced processors, including the fifth-generation Xeon processor, which the company claims is capable of handling heavy workloads for AI applications in data centers, in addition to the Intel Core Ultra processor, which can “efficiently accelerate AI and perform local inference on a personal computer.”
Potential Clients
The company may also reveal some clients who will utilize its new AI-capable processor at the “AI Everywhere” event. When Intel launched the previous generation of the Xeon processor at the beginning of 2023, it announced several key clients including Amazon’s (AMZN) cloud web service, Microsoft’s (MSFT) cloud service, Google’s (GOOGL) cloud service, and Dell (DELL).
Emerging Opportunity for Intel
Artificial intelligence represents an emerging opportunity for Intel, as the company “is making good progress in the front-end manufacturing sector,” which provides significant long-term growth potential, according to Raymond James analysts.
Revenue Increase and Partnerships
Intel reported that its industrial segment, which makes chips for corporate and government clients, saw a 299% increase in revenues in the third quarter of 2023 compared to the same period last year, which contributed, along with a recovering personal computer market, to profits in October.
Potential Collaboration with Nvidia
When asked whether Nvidia would consider collaborating with Intel’s industrial division at the UBS event at the end of November, Nvidia’s CFO Colette Kress stated that the company has ongoing collaborations with Taiwan Semiconductor Manufacturing Company and Samsung, but would “like to have a third partnership.”
Stock Value Increase
Intel shares rose by 1.2% on Wednesday ahead of the event, contributing to an increase of over 66% since the beginning of the year.
Conclusion
The launch event for Intel’s new processors capable of powering AI systems is expected to be a significant opportunity for the company to strengthen its position in the AI boom and capitalize on the growing demand for AI tools and applications like Nvidia and Advanced Micro Devices.
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