Intel stock rises after reportedly unveiling new AI chip for data centers

Published 15/10/2025, 14:06
Intel stock rises after reportedly unveiling new AI chip for data centers

Investing.com -- Intel Corporation (NASDAQ:INTC) stock gained 1.8% in premarket trading Wednesday following Reuters reporting the company’s announcement of a new artificial intelligence chip for data centers, set to launch next year.

The chip, named Crescent Island, was unveiled by Intel’s Chief Technology Officer Sachin Katti at the Open Compute Summit on Tuesday, according to Reuters. It represents Intel’s latest effort to compete in the lucrative AI chip market currently dominated by NVIDIA (NASDAQ:NVDA) and AMD (NASDAQ:AMD).

Katti emphasized that the new GPU will be optimized for energy efficiency and AI inference, with a focus on delivering "the best token economics out there, the best performance per dollar." The chip will feature 160 gigabytes of memory, though it will use a slower form than the high bandwidth memory (HBM) found in competing products from AMD and NVIDIA.

This announcement comes as part of CEO Lip-Bu Tan’s strategy to revitalize Intel’s AI initiatives after previously shelving projects such as the Gaudi line of chips and Falcon Shores processor. The company has struggled to capitalize on the surge in AI spending that has generated billions in revenue for its competitors.

Crescent Island will be based on a design Intel has previously used for its consumer GPUs and will support a wide range of applications, including running AI inference workloads.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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