Intel (NASDAQ: INTC) stock popped in Monday’s trading. The semiconductor company’s share price ended 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 also got a boost due to excitement surrounding upcoming processors that could strengthen the company’s position in the artificial intelligence (AI) space and gaming hardware market.
One analyst thinks Intel is a top AI play for 2024’s second half
Intel stock got a boost Monday thanks to bullish coverage from Melius Research analyst Ben Reitzes. On the heels of explosive valuation gains for Nvidia and other AI leaders, Reitzes went looking for top artificial intelligence plays in the second half of this year. And he thinks that Intel has what it takes to deliver wins.
In particular, Reitzes sees Microsoft’s new Recall AI being a potential demand tailwind for Intel. The Recall feature will allow users to easily snap back to early points in their computers’ data history, and the analyst thinks it could be a meaningful catalyst for devices built using Intel’s Lunar Lake central processing unit (CPU) line for PCs and mobile. Lunar Lake could debut this year or early in 2025.
Intel is trying to be a bigger player in GPUs
Reports also emerged over the weekend that Intel is gearing up to launch a new graphics processing unit (GPU) that is set to be fabricated by Taiwan Semiconductor Manufacturing. The Battlemage processor for PCs is said to use TSMC’s four-nanometer (4nm) node platform and is expected to launch in 2025. The upcoming processor is targeted at the gaming market rather than the data-center market that is at the heart of the AI revolution, but investors seem to be bullish about Intel’s efforts to expand in the GPU space.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy.
Why Intel Stock Surged Today was originally published by The Motley Fool
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