Intels Push into AI Market: Can It Overcome Competition and Stock Performance Challenges?

Intel Corporation (INTC) is making a strong push into the expansive AI sector, collaborating with original equipment manufacturers like HP to develop next-generation AI PCs. The company has been working closely with HP to identify and optimize a set of AI applications that can deliver significant benefits to end users.

During this venture, Intel tested around 12 configurations in eight AI PC models, fine-tuning and optimizing the performance of CPU, GPU, and NPU resources. This collaboration has led to impressive results, with applications like Microsoft Power BI, Tableau, and Adobe Lightroom running significantly faster on Intel-powered systems compared to previous generations. The AI writing assistant Writeup, optimized for Intel's GPU, runs 165% faster, while the AI-powered screen recorder Canvid runs 223% faster for some features. These advancements can greatly boost efficiency across an organization's internal processes.

However, Intel faces fierce competition from Qualcomm Incorporated (QCOM) and Advanced Micro Devices (AMD) in the AI market. Qualcomm has taken the market by storm with the launch of the Snapdragon X chip for mid-range AI desktops and laptops, while AMD's flagship Ryzen AI 300 Series is also witnessing broad industry-wide adoption.

Despite its efforts in the AI market, Intel's stock has lost 31% over the past year against the industry's growth of 11.2%. The company's shares currently trade at a lower price/book ratio than the industry average, carrying a Value Score of D. Intel's earnings estimates for 2025 and 2026 have also declined over the past year, with estimates for 2025 dropping 39.58% to 29 cents per share and estimates for 2026 dropping 29.36% to 77 cents.

In conclusion, Intel Corporation (INTC) is actively taking initiatives to gain a firmer footing in the expansive AI sector, collaborating with OEMs like HP to develop next-generation AI PCs. However, the company faces stiff competition from Qualcomm and AMD, and its stock performance has been lackluster over the past year. Investors should consider these factors when evaluating Intel's prospects in the AI market.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered investment advice. Always consult a financial advisor before making any investment decisions.