Intel and AMD's Expanding Roles in the AI Era: A Gradual Progress Towards Challenging Nvidia's Dominance

Santa Clara, California United States of America
AMD expects to release a new chip, MI350, in 2025 that will perform 35 times better in inference compared to its currently available MI300 series.
AMD unveiled the MI400 series, scheduled for 2026 and based on an architecture called 'Next'.
Intel and AMD are expanding their roles in the AI era by investing heavily in AI chips and manufacturing capacities.
Intel dominates the x86 laptop CPUs market with a 75% market share.
Intel's earnings are expected to increase by 81% in the next few years.
Intel's Gaudi 3 accelerator is more powerful and efficient than Nvidia's H100.
Intel's share price has seen significant movement in recent months, ranging from US$29.85 to US$44.52.
Intel's solid exposure to AI and data centers, as well as its larger R&D budget compared to Nvidia and AMD, position it well for gains in the accelerating spending on data centers and AI.
Intel and AMD's Expanding Roles in the AI Era: A Gradual Progress Towards Challenging Nvidia's Dominance

Title: Intel and AMD's Expanding Roles in the AI Era: A Gradual Progress

The race for dominance in the Artificial Intelligence (AI) era is heating up, with Intel Corporation (NASDAQ: INTC) and Advanced Micro Devices (AMD) making significant strides to increase their roles in this burgeoning industry. Both companies have been investing heavily in AI chips and expanding their manufacturing capacities.

Intel's Gaudi 3 accelerator, which is more powerful and efficient than Nvidia's H100 according to the company, is a testament to its commitment to becoming a leading player in the foundry market. Intel dominates the x86 laptop CPUs market with a 75% market share, while AMD has gained ground with cheaper and more advanced CPUs.

AMD, on the other hand, is also making waves in the AI chip race. The company expects to release a new chip, MI350, in 2025 that will perform 35 times better in inference compared to its currently available MI300 series. AMD also unveiled the MI400 series, scheduled for 2026 and based on an architecture called 'Next'.

Despite their progress, both Intel and AMD face stiff competition from Nvidia Corporation (NVDA), which has had an early lead in the AI chip race. However, Intel's solid exposure to AI and data centers, as well as its larger R&D budget compared to Nvidia and AMD, position it well for gains in the accelerating spending on data centers and AI.

Price Considerations Intel Corporation's share price has seen significant movement in recent months, ranging from US$29.85 to US$44.52. Its price-to-earnings ratio is 32.7x, slightly above the industry average of 30.82x.

However, Intel's earnings are expected to increase by 81% in the next few years, making it an attractive investment opportunity for value investors.

Conclusion Both Intel and AMD are making significant strides in the AI era by expanding their roles and investing heavily in AI chips. Despite competition from Nvidia, their solid exposure to AI and data centers, as well as larger R&D budgets, position them well for gains in the accelerating spending on data centers and AI.


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Confidence

91%

Doubts
  • AMD has not yet released the MI350 chip, so its performance claims should be taken with a grain of salt.
  • The comparison of Intel's Gaudi 3 accelerator to Nvidia's H100 is based on Intel's claims, and it remains to be seen how these chips will perform in real-world scenarios.

Sources

91%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

When Should You Buy Intel Corporation (NASDAQ:INTC)?

Yahoo Finance editorial-team@simplywallst.com (Simply Sunday, 07 July 2024 11:22
  • Unique Points
    • Intel Corporation (NASDAQ:INTC) share price moved between US$29.85 and US$44.52 in recent months.
    • Intel's price-to-earnings ratio is 32.7x, slightly above industry average of 30.82x.
    • Intel's earnings are expected to increase by 81% in the next few years.
  • Accuracy
    • ]Intel Corporation (NASDAQ:INTC) share price moved between US$29.85 and US$44.52 in recent months.[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains an appeal to optimism with the statement 'Intel's earnings over the next few years are expected to increase by 81%'. This is an inflated expectation and can potentially lead readers to make irrational investment decisions based on unrealistic growth projections.
    • Intel's earnings over the next few years are expected to increase by 81%
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

93%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Intel And AMD Are Going For A Bigger Role In The AI Era, But At A Gradual Pace

Yahoo Finance Unknown Upwallstreet Sunday, 07 July 2024 11:24
  • Unique Points
    • Intel and AMD are increasing their roles in the AI era.
    • , Intel controls 64% of the x86 CPU market.
    • , AMD has gained market share with cheaper and more advanced CPUs.
    • , Intel is investing heavily in becoming a leading player in the foundry market by opening chip fabs throughout the US.
    • , AMD expects to release a new chip, MI350, in 2025 that will perform 35 times better in inference compared to its currently available MI300 series.
    • , AMD also unveiled the MI400 series, scheduled for 2026 and based on an architecture called ‘Next’
    • , Intel launched new AI accelerators this year and is expanding its manufacturing capacity to become the leading AI chip fabricator.
  • Accuracy
    • Intel controls 64% of the x86 CPU market.
    • Intel is investing heavily in becoming a leading player in the foundry market by opening chip fabs throughout the US.
    • AMD expects to release a new chip, MI350, in 2025 that will perform 35 times better in inference compared to its currently available MI300 series.
    • Intel is well-positioned in data centers with $3 billion Q1 revenue from Data Center and AI business, XEON processors popular in data centers.
    • Intel dominates x86 laptop CPUs market with 75% market share.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (75%)
    The article contains some inflammatory rhetoric and appeals to authority, but no formal or informal fallacies were found in the author's statements. The inflammatory rhetoric is mainly directed at Nvidia Corporation and its dominance in the AI chip market. The appeals to authority come from quoting industry reports (PassMark Software) and mentioning companies' own projections for future sales and product performance.
    • . . . Intel struggled to manufacture smaller, denser, and more power-efficient CPUs on its own, grappling with delays and shortages.
    • Intel is also setting itself apart from AMD and Nvidia with competitive pricing.
    • According to PassMark Software, Intel still controls 64% of the x86 CPU market.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

72%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Intel Stock Analysis: A High-Stakes AI Bet That's Already Priced In

InvestorPlace.com Michael Que Thursday, 04 July 2024 10:30
  • Unique Points
    • Intel manufactures AI chips like the ARC A770, A750, and A580 lineups.
    • The U.S. government announced more than $100 billion in the U.S. semiconductor chip industry over the next five years and $8.5 billion directly to Intel under the CHIPS Act.
  • Accuracy
    • ]Intel manufactures AI chips like the ARC A770, A750, and A580 lineups.[
    • Intel has only 1% of the market share in AI chips and its efforts have been mediocre.
    • Intel is currently trading at a forward price-to-earnings ratio of 32.3x.
    • Intel has only 1% of the market share in AI chips.
  • Deception (30%)
    The article contains selective reporting and emotional manipulation. The author focuses on Intel's losses in market share and declining revenue while highlighting the potential of AI chips to increase its valuation. However, he fails to mention any positive developments or progress Intel has made in the AI chip market. This creates a biased perspective that misrepresents Intel's current situation. Additionally, the author uses emotional language like 'pure gamble' and 'exceptionally priced' to manipulate readers into feeling uneasy about investing in Intel, even though he doesn't provide any concrete evidence of deception or wrongdoing.
    • However, I don’t want to take this bet because it is losing customers in its core segment of desktop CPUs while its AI efforts have been mediocre.
    • I might’ve considered Intel if its valuation keeps coming down, but for now, buying into Intel is a pure gamble on AI that is already exceptionally priced.
  • Fallacies (75%)
    The article contains a few informal fallacies and appeals to authority. It does not contain any formal logical fallacies. The author presents their opinion on Intel's stock without providing any new information or analysis beyond publicly available data.
    • . . . the stock is down 38% year-to-date in a year that tech stocks are rallying.
    • One of the key ways Intel plans to use this funding is to develop its AI capabilities. That means this funding can help it catch up to competitors in AI chips, such as Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD)
    • In addition, it lost out to ARM (NASDAQ:ARM), when Apple (NASDAQ:AAPL)’s computers stopped using Intel in 2020.
    • As a result of its failure to catch up with the rest of the market, Intel’s revenue has tanked.
  • Bias (95%)
    The author expresses a negative opinion towards Intel's stock and its valuation, implying that it is overpriced due to the AI craze. However, he also acknowledges the potential for Intel to penetrate the AI chip market with government funding. This could be seen as a neutral stance on Intel's bias towards AI. However, the author's repeated use of phrases like 'pure gamble', 'exceptionally priced', and 'already priced in' demonstrate a negative bias towards Intel and its stock.
    • However, I don’t want to take this bet because it is losing customers in its core segment of desktop CPUs while its AI efforts have been mediocre.
      • I might’ve considered Intel if its valuation keeps coming down, but for now, buying into Intel is a pure gamble on AI that is already exceptionally priced.
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      92%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      Intel: Why The Dip Is Not Fair

      Seeking Alpha Investment Community DT Invest Friday, 05 July 2024 15:40
      • Unique Points
        • Intel generates more Data Center revenue compared to AMD and spends more on R&D than NVIDIA and AMD.
        • Intel's Gaudi 3 accelerator is more powerful and efficient than Nvidia’s H100 according to the company.
        • Intel dominates x86 laptop CPUs market with 75% market share, AMD’s market share is much lower and Nvidia not a factor.
      • Accuracy
        • ]Intel generates more Data Center revenue compared to AMD and spends more on R&D than NVIDIA and AMD.[
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (85%)
        The article contains some strong points and analysis about Intel's position in the AI and data center markets. It provides detailed information on Intel's R&D spending, product offerings, partnerships with major cloud players, and market share. The author also uses a discounted cash flow model to estimate the intrinsic value of Intel's stock. However, there are some potential fallacies present in the article.
        • The main competitors of AWS have similar ambitions and plans.
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      94%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      Better Artificial Intelligence (AI) Stock: Intel vs. AMD

      Yahoo Finance Dani Cook, Sunday, 07 July 2024 11:31
      • Unique Points
        • Intel is expanding its manufacturing division with plans to become a leading AI chip fabricator.
        • ,
      • Accuracy
        • Intel is the leading AI chip fabricator.
        • Intel's products cost roughly a third of the price of similar products on the market.
        • Intel is offering competitive pricing on its chips.
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (85%)
        The article contains a few informal fallacies and appeals to authority. The author makes claims without proper sourcing, such as 'Crucial changes to Intel’s business model over the last year show the company playing the long game' and 'Advanced Micro Devices AMD has become a company to watch over the last year'. These statements lack proper citations or evidence. Additionally, there are appeals to authority in phrases like 'According to Allied Research' and references to Tom's Hardware and Randi Zuckerberg. The author also uses inflammatory rhetoric when describing Nvidia's market share as 'challenging to overcome', implying that it is nearly impossible for AMD and Intel to compete. Despite these fallacies, the article does provide a relatively balanced comparison of Intel and AMD in the AI market.
        • Crucial changes to Intel’s business model over the last year show the company playing the long game
        • Advanced Micro Devices AMD has become a company to watch over the last year
        • According to Allied Research, the semiconductor foundry market was worth about $107 billion in 2022 and is expanding at a rate that will see it more than double to $232 billion by 2032.
        • Nvidia«»s estimated 90% market share in AI GPUs will likely be challenging to overcome
        • The author uses inflammatory rhetoric when describing Nvidia's market share as 'challenging to overcome', implying that it is nearly impossible for AMD and Intel to compete.
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication