Raymond James says Intel might turn out to be a beneficiary of the rising pleasure for synthetic intelligence.
On Thursday, analyst Srini Bagori reiterated his outperform ranking for
Inventory (INTC), citing upcoming processors that could possibly be used for synthetic intelligence functions. He has a $42 worth goal for the chip maker. In early buying and selling Thursday, Intel shares remained nearly unchanged at $38.60.
“Whereas Intel is unlikely to get a lot credit score for its AI efforts within the close to time period, we consider the corporate is nicely positioned,” the analyst wrote. We see “mitigation of fairness losses, improved roadmap execution, foundry progress, and long-term AI alternative.”
Bajouri expects Intel to speak extra prominently about future AI chips at its developer convention subsequent week. He stated the corporate’s Gaudi AI accelerators could possibly be aggressive with market leaders
Merchandise for smaller scale AI workloads.
He stated Gaudi “may make a significant contribution to revenues in 2024.”
Some analysts have expressed concern that Intel might face near-term strain as prospects prioritize buying AI-related chips over conventional Intel CPUs. However Bagori downplayed this danger.
“The impression of GPU cannibalization has been manageable thus far, and we proceed to consider that the unfold of AI will profit most information middle chipsets, together with CPUs, in the long run,” he stated.
Intel shares are up 32% over the previous 12 months.
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(Tags for translation)Synthetic Intelligence Applied sciences