Intel Corp (NASDAQ:INTC) is gearing up for increasing demand for AI-enabled consumer products. It expects that companies will increasingly rely on private environments for their AI computing needs.
Intel wants to integrate AI capabilities into various products, from computers to edge computing to software, according to the Wall Street Journal’s Alexis Crowell, Intel’s VP and CTO for Asia Pacific and Japan.
Crowell noted that demand for traditional data centers could decline as companies seek a balance between public cloud infrastructure and private data storage for privacy and cost reasons.
This shift aligns with IDC’s prediction that by next year, 75% of enterprise-generated data will be processed outside traditional data centers or the cloud.
Intel, traditionally strong in CPUs for personal computers and servers, faces challenges in the data center market dominated by Nvidia Corp (NASDAQ:NVDA) AI chips.
Still, Intel’s data center and AI division saw a 5% increase in revenue to $3 billion in the first quarter.
The company plans to strengthen its AI chip offering with the Gaudi 3 chip, which will likely outperform Nvidia’s H100 and generate $500 million in revenue in the second half of 2024, WSJ writes.
CEOs of chip companies, including Intel and Nvidia, have met Taiwan’s Computex event to discuss the prospects of AI.
Currently, Intel and Advanced Micro Devices Inc (NASDAQ:AMD) are battling for dominance of the AI PC market, while Nvidia sealed its numero uno position with its latest quarterly profit.
Intel has earmarked chips for more than 100 million AI PCs by 2025, including more than 40 million by 2024.
Intel shares have lost more than 4% over the past twelve months. Investors can gain exposure to the shares through ProShares Nanotechnology ETF (NYSE: KLEIN)
And First Trust S-Network streaming and gaming ETF (NYSE:BNGE).
Price promotion: INTC shares were trading 0.63% lower at $30.00 at last check on Friday.
Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
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This article Intel Eyes Boosts Demand for AI Products, Shifts Focus to Private Data Storage Solutions originally appeared on Benzinga.com
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