Don't count Intel out as a long-term AI play
Intel (INTC) is in focus amid ongoing recovery efforts. Investors have toyed with the idea of a possible acquisition or split of businesses to revive the legacy chipmaker, which has struggled to keep up as names like Nvidia (NVDA) and Advanced Micro Devices (AMD) have capitalized on the artificial intelligence (AI) boom. Creative Strategies CEO and principal analyst Ben Bajarin joins Morning Brief co-hosts Seana Smith and Brad Smith to discuss Intel's position as an AI player and the challenges and concerns the company faces. "There's two things going on that we should be really focused on," Bajarin says regarding Intel. "One: What are their technology differentiators from a foundry standpoint? ... We know that Intel Foundry has a lot of very good core [intellectual property] IP that they've been developing, and that should be worth something." Secondly, Bajarin also suggests focusing on what Intel is "doing with underlying manufacturing technology — things like PowerVia, innovations in backside power, what they're doing in transistors in design." He adds, "We need to think about that the same way that we think about what TSMC (TSM) brings to the table that differentiates their customers to go and compete and design products." The analyst adds, "The [computer processing unit] CPU is still highly relevant to AI infrastructure; it's one of the most critical parts to reduce latency [and] to manage the orchestration layer. " He adds that he thinks investors can "get really caught up" in more advanced chips and "forget" that "there's actually a really nice upswing for design CPUs that are built from the ground up for AI, and we don't have those yet." While Bajarin believes Intel has "a lot of opportunity", he worries that investors may lose patience as "it's a long story." To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Naomi Buchanan.
