(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.
become complacent, making it susceptible to more innovative competitors.its dominance, has
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,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 hasa 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 beThe 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 lastis 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.
Last year, chip stocks soared alongAs a result, has market share in AI graphics processing units (GPUs), the chips required to train and run AI models. By 2024, Intel is expected to challenge resulting in higher earnings.
Gaudi3 GPUs were announced in December and are designed to compete directly with GPUs. Additionally, the tech giant announced Core Ultra processors and Xeon server chips with neural processing units for faster AI programs.