Posted 1/26/2024, 1:21:00 AM
Intel stock sinks as AI woes weigh on data center hopes
- Intel's stock plunged 11% due to disappointing Q1 forecast and ongoing struggles in data center business where it hopes to capitalize on AI
- Intel claims $2B pipeline for its AI accelerator chips, but new iterations not expected until 2024, lagging Nvidia
- Analysts skeptical of Intel's ability to compete with Nvidia in AI training; better positioned for inference but will take time
- Intel also betting on new AI-powered PCs using its chips, but uptake unclear and not expected until late 2023
- Lesson is investors got ahead of themselves on Intel's AI capabilities; lots of AI hype but unclear who will capitalize most