In 2024, Intel Stock Could Be a Good Investment

(CTN News) – Investors in Intel (NASDAQ: INTC) have had a difficult time over the last few years. At least for a decade, the company accounted for over 80% of the central processing unit (CPU) market, and was the primary chip supplier for Apple’s MacBook line.

In spite of its dominance, has become complacent, making it susceptible to more innovative competitors.

Throughout 2017, Advanced Micro Devices gradually reduced share of the global CPU market, which now stands at 69%. It was then that Apple decided to cut its ties in 2020 in favor of more powerful in-house hardware designs.

In the subsequent three years, the stock price has decreased by 7%. A 20% decrease in annual revenue was accompanied by a 90% decrease in operating income.

Although has fallen from grace, the fall has seemed to ignite a fire under the company once again. From the second quarter of 2022 to the second quarter of 2023, Intel reclaimed 3% of CPU market share from AMD, according to Mercury Research. As a result, the company has shifted its focus to the burgeoning market for artificial intelligence (AI).

Intel appears to be returning to growth. The following are three compelling reasons to invest in its stock in 2024.

1. Intel plans to make a big splash in artificial intelligence

Grand View Research estimates that the AI market reached nearly $200 billion last year, and is expected to grow at a compound annual growth rate of 37% through 2030. On that trajectory, it is expected to reach a valuation exceeding $1 trillion by the end of the decade.

As a result, it is not surprising that tech companies like are placing a high priority on the development of artificial intelligence.

Last year, chip stocks soared along with a growing interest in artificial intelligence. As a result, Nvidia has gained a substantial market share in AI graphics processing units (GPUs), the chips required to train and run AI models. By 2024, Intel is expected to challenge Nvidia’s dominance in AI, resulting in higher earnings.

The Gaudi3 GPUs were announced in December and are designed to compete directly with Nvidia’s GPUs. Additionally, the tech giant announced new Core Ultra processors and Xeon server chips with neural processing units for faster AI programs.

SEE ALSO:

Equinix And NVIDIA Team Up To Offer AI Supercomputers To Businesses