Why Intel Stock Soared Monday Morning

Shares of Intel (NASDAQ: INTC) rose as much as 3.7% from the start on Monday. At 12:41 a.m. ET, the stock was still up 3.5%.

The catalyst that provided the driving force semiconductor company higher were a Wall Street analyst’s comments on the state of the chip industry.

A potential opportunity

That news came out at the end of last week Nvidia created a business segment to design custom processors for cloud computing and artificial intelligence (AI), as first reported by Reuters. This comes in the wake of an “exploding market for custom AI chips” and is seen as a defensive move to maintain its market dominance, according to the report.

After looking at the landscape, analysts concluded from bank of America concluded that while this move could have longer-term competitive implications for rival chip makers, it is unlikely to have any short-term impact.

While the report did not specifically focus on Intel, the analysts said they “would not be surprised” if Intel Foundry Services (IFS) “entered the mix as a potential alternative to the foundry leader.” Taiwanese semiconductor manufacturing to create these customer processors.

The AI ​​gold rush has only just begun

The first wave of AI chips focused primarily on computing performance, but some users are starting to think about the cost. The next wave of innovation will likely emphasize energy consumption and optimization, potentially lowering the cost of AI and bringing it within reach of companies with more modest budgets.

Intel has bold goals for its foundry business, with plans to “become the second largest foundry in the world by 2030,” according to Stuart Pann, Intel’s senior vice president and general manager of IFS.


Read Complete News ➤

Benefits of eating guava for Americans