Shares of Intel (INTC 1.37%) were climbing Thursday, seemingly in response to its “AI Everywhere” event. The chipmaker also seems to have gotten a modest boost from the Federal Reserve’s decision to keep interest rates steady yesterday and its dovish forecast for next year.
As of 12:45 p.m. ET, the stock was up 2.5% after climbing as much as 5.6% earlier in the trading session.
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Intel unveils new AI products
The company launched three new chips at the AI Everywhere event today. The first was the Intel Core Ultra mobile processor family, which Intel says offers its most power-efficient PC processors and will expedite the development of the artificial intelligence (AI)-powered PC.
It also announced the fifth-generation Intel Xeon processor, built with AI acceleration, and CEO Pat Gelsinger showcased the Intel Gaudi 3 AI accelerator for the first time, which will be available next year.
Gelsinger said: “Intel is on a mission to bring AI everywhere through exceptionally engineered platforms, ensure solutions and uphold for open ecosystems. Our AI portfolio gets even stronger with today’s launch of Intel Core Ultra ushering in the age of the AI PC and AI-accelerated 5th Gen Xeon for the enterprise.”
Intel is also partnering with more than 100 software vendors to bring new AI applications to the PC market.
What’s next for Intel?
Based on the stock’s gains today, the market seems to approve of the presentation. Intel should be able to fill a need in the market here as there is a clear shortage of AI chips and processors — companies appreciate OpenAI and Oracle have complained that they simply don’t have the capacity to keep up with demand.
While Nvidia has been the big winner thus far in AI, other chip stocks should start to see a benefit given the extraordinary demand for new computing power, and that should benefit Intel.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
