Intel Stock in Focus After Company Reveals Next-Gen AI Data Center Chips 2024

 

Intel shares rose 1.5% in premarket trading after the company unveiled new AI chips for data centers.

Intel's Xeon 6 data center chips will come in two types: an efficiency model and a more powerful performance model.

Intel's Gaudi 3 accelerator kit will cost around $125,000, which is cheaper than Nvidia's comparable HGX server system.

Intel's stock has struggled this year, but the company is hoping its new AI chips will help it gain market share.

Intel CEO Pat Gelsinger has said that the company's prices for its new AI chips will "crush the competition."

The company's Gaudi 3 accelerator kit, which houses eight Xeon 6 chips, will sell for around $125,000, making it considerably cheaper than Nvidia’s (NVDA) comparable HGX server system with eight H100 AI chips that can cost more than $300,000.

Intel, which makes its own processors, will be hoping its competitively priced data canter chips can help it reclaim market share that's been lost to competitors over the past year due to several manufacturing challenges.

Intel's stock has fallen over 34% in the past five years.

Intel's next-generation Xeon server processors aim to regain data center market share.

The Gaudi 3 artificial intelligence accelerator chips will be priced lower than its rivals' products.

Intel's share of the data center market for x86 chips has declined 5.6 percentage points over the past year to 76.4%, with AMD now holding 23.6%.

The company's stock price forecast is $40.26, which is an increase of 34.07% from the latest price.