Intel stock has been rising steadily over the past five days. This is due to the artificial intelligence boom, which is the increased interest in agent-based artificial intelligence in both the enterprise and consumer markets. AI agents require powerful CPUs, not GPUs, to run, and Intel is the largest supplier of these products.
Central processing units (CPUs), like graphics accelerators, have become key components of artificial intelligence data centers. Initially they were considered minor, as graphics accelerators were primarily used to run and train AI models, but with the advent of AI agents, that changed.
The fact is that while graphics accelerators are the basis for the training and inference of the AI models that the AI agents are based on, it is the CPU that allows the agents to perform tasks on the fly, such as browsing websites, making purchases on behalf of users, and so on. Recently released Meta AI agents✴ Muse quickly became a hit in the United States. According to Sensor Tower, the app has been downloaded 2.5 million times since its launch on September 8.
As for Intel, the company is undergoing a major transformation as it seeks to once again become a leader in cutting-edge chip manufacturing. At the same time, the company is developing a contract manufacturing business to compete directly with Taiwan Semiconductor Manufacturing Co., Ltd. According to Digitimes, Intel will increase the price of its processors by 10% amid growing demand for CPUs in the AI field.
In June, media reported that Google had selected Intel Foundry as the contract manufacturer for its customized tensor processing unit (TPU). Nvidia is also considering Intel as a backup chipmaker. Not long ago, it was reported that SK Hynix was negotiating with Intel to acquire its unfinished factory for the production of memory chips.
Intel’s stock price has been growing steadily over the past five months, with the price rising a total of 159%, significantly faster than the growth in value of Nvidia securities, which has risen 49% over the same period. Meanwhile, shares of AMD, which recently reached the market capitalization of Intel’s main rival, are up 180% in five months. If we consider the longer period, Intel is in the lead: the company’s shares are up 314% over the past 12 months, while AMD’s securities are up 293% and Nvidia’s 29%.
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