Intel (NASDAQ:INTC) shares rallied on Tuesday as the company unveiled its latest endeavor to compete in the booming AI market, where competitors like Nvidia (NASDAQ:NVDA) and AMD have seen substantial gains in value. Despite facing setbacks, Intel, under CEO Pat Gelsinger’s leadership, is determined to expand its presence across the AI landscape, targeting next-generation laptops, and client-based servers, and bolstering its contract chip-foundry business.
While Intel has faced challenges such as bloated inventories and losses in its foundry division, rivals like AMD and Nvidia have capitalized on various business segments, resulting in significant market share gains and revenue growth. Over the past five years, Intel shares have declined by more than 34%, contrasting sharply with AMD’s 400% gain and Nvidia’s remarkable 3,000% surge.
In a bid to narrow the gap, Intel unveiled three updated products at the Computex conference in Taiwan, signaling a significant challenge to both AMD and Nvidia. The introduction includes the Intel Xenon data center processor, set to hit the market this week, with a higher-end version expected in the third quarter. Additionally, Intel announced the Lunar Lake chip for AI computing, slated for shipping in the third quarter, and revealed pricing details for the Gaudi family of AI accelerators, aiming to undercut Nvidia’s H100 chips.
Intel’s CEO, Pat Gelsinger, emphasized the company’s commitment to innovation across the AI spectrum, emphasizing the flexibility, security, and cost-effectiveness of its solutions. Gelsinger also took a direct jab at Nvidia CEO Jensen Huang, asserting that Intel’s advancements prove that Moore’s Law, which predicts doubling chip speeds and halving costs every two years, remains relevant.
Despite challenges and a recent sales outlook adjustment, Gelsinger remains bullish on Intel’s prospects in the AI industry, envisioning massive growth akin to the internet boom of 25 years ago. Pre-market trading indicates a 1.9% increase in Intel shares, reflecting optimism surrounding its AI initiatives, although the stock still lags around 40% for the year.
Featured Image: Megapixl
Author Faith Yakubu 
