Intel Stock (NASDAQ:INTC) Gains as New Push Into AI Hardware Takes Hold

Chip stock Intel INTC +2.78% ▲ had been perceived for quite some time as a laggard in the artificial intelligence (AI) space. That projection is not inherently out of line, and Intel has been frantically working to come from behind in AI hardware. Several new advances have been made herein, and investors seem very pleased. Sufficiently pleased to send shares up nearly 2% in Thursday afternoon’s trading.

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Reports note that Intel’s Xeon 6 processors will now be part of the DGX Rubin NVL8 AI system at Nvidia NVDA -0.54% ▼ . This gives Intel particular credibility in the AI hardware arena, particularly since Nvidia was, for the longest time, the main name in the field thanks to its array of graphics processing unit (GPU) systems.

And with Intel’s central processing units (CPUs) now serving as the control layer around clusters of GPUs, this makes Intel that much more credible in the AI hardware market. The news is not all good, though, as the surge in AI hardware will require Intel to produce a substantial number of processors to have any hope of keeping up with demand. Any failure in this operation will likely hit Intel that much harder since Intel is coming back from obscurity in the AI hardware market.

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Not the Only Development

Intel’s Xeon 6 processors are showing up somewhere else, too, as part of the VersaONE Universal SASE Platform. This combination of tools gives Enterprise AI deployment better access to edge computing by turning standard edges into Intelligent Edges instead.

The big difference between the two is mostly functional. An Intelligent Edge can function as a key infrastructure layer that allows security, networking, and AI capabilities to all intermingle together, opening up the possibility of a complete system. Since a lot of users function near a network edge, being able to offer an Intelligent Edge brings the fullest amount of services to the parts of the network that do not often get access to these.

Is Intel a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on seven Buys, 22 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After an 87.94% rally in its share price over the past year, the average INTC price target of $47.97 per share implies 4.52% upside potential.

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