Intel (NASDAQ: INTC) The stock fell in trading on Monday. The semiconductor companyThe share price closed the session up 6.2%, according to data from S&P Global Market Intelligence.
Intel stock jumped today thanks to bullish coverage from an analyst. The chip giant’s share price was also boosted by excitement surrounding upcoming processors that could strengthen the company’s position in the space equipment and artificial intelligence (AI) gaming market.
One analyst believes Intel is a top AI play for the second half of 2024
Intel stock gained on Monday thanks to bullish coverage from Melius Research analyst Ben Reitzes. Following the explosive valuation gains of Nvidia and other AI leaders, Reitzes began looking for top AI games in the second half of this year. And he believes Intel has what it takes to deliver wins.
In particular, Reitzes sees Microsoft’s new Recall AI as a potential demand driver for Intel. The Recall feature will allow users to easily restore the earliest points of their computers’ data history, and the analyst believes it could be a major catalyst for devices built using Intel’s Lunar Lake line of central processing units (CPUs) for computers and mobiles. Lunar Lake could debut this year or in early 2025.
Intel is trying to be a bigger player in GPUs
Also over the weekend, reports surfaced that Intel is preparing to launch a new graphics processing unit (GPU) that is set to be built by Taiwan Semiconductor Manufacturing. The Battlemage processor for PCs is said to use TSMC’s four-nanometer (4nm) node platform and is expected to be released in 2025. The upcoming processor is aimed at the gaming market rather than the data center market that is at the heart of the AI revolution, but investors seem to be positive about Intel’s efforts to expand into the GPU space.
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Keith Noonan has no position in any of the listed shares. The Motley Fool has positions and recommends Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 Intel calls and short August 2024 $35 Intel calls. The Motley Fool has one disclosure policy.
Why Intel stock soared today originally published by The Motley Fool
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