Global Equities' Chowdhry says buy the dip in Intel stock

On Tuesday, Global Equities Research analyst Trip Chowdhry provided a bullish outlook on Intel Corporation (NASDAQ:INTC), advising clients to seize the opportunity presented by the current weakness in Intel stock. The firm has set a price target of $100 for Intel over the next 12 to 18 months, citing strong prospects for the company's artificial intelligence (AI) initiatives under its current leadership.

Intel's AI strategy has seen significant improvements since the dismissal of the previous CEO. The company's AI-focused personal computers (PCs) have begun to shift AI workloads away from Nvidia's (NASDAQ:NVDA) GPU AI servers. Additionally, Intel's Gaudi 3.0 GPU accelerators are making inroads into Nvidia's data center workloads.

The advancements under Intel's present management include accelerated progress on the 18A process technology, with the Panther Lake Processor set to make an impact on AI processors. The firm highlighted various developments that position Intel to benefit from the AI industry's evolution expected in 2025. These include the integration of AI models into operating systems running on Intel AI PCs, the local running of small language models with high accuracy at a fraction of the cost, and the development of serverless AI computing, which could open up new markets for Intel's Gaudi 3.0 in data centers.

Moreover, Intel's AI PCs are expected to support a range of applications such as Github Desktop and LM Studio, which can run distilled AI models locally. The adoption of Intel's SYCL as an alternative to Nvidia's CUDA, along with open-source initiatives, is anticipated to enhance the efficiency of AI models on Intel's AI processors.

Global Equities Research also noted Nvidia's consideration of Intel's 18A process to address its power consumption issues, which could potentially reduce overheating problems in Nvidia products.

Looking ahead to 2025, the analyst firm envisions Intel dominating the AI sector with its PC and Gaudi 3 technologies. Intel's Quantum (NASDAQ:QMCO) Computing efforts, including the Pando Tree and Tunnel Falls Quantum Processors and the Quantum Software (ETR:SOWGn) Development Kit (QSDK), are also making strides, further underscoring the company's commitment to advancing AI technology.

In summary, Global Equities Research's optimistic stance on Intel reflects the company's strategic moves in AI and quantum computing, which are expected to yield significant results in the coming years.

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