Intel Corp. (NASDAQ:INTC) is a California-based company that is engaged in the design, development, manufacture, marketing, and sale of computing and related products and services around the world. Shares of this computing stock have dropped 14% month-over-month as of close on Tuesday, April 9, 2024. Meanwhile, the stock has fallen 19% so far in 2024. Intel managed to gain some fleeting momentum to kick off the beginning of this week. What spurred this upward tick? Let’s jump in.
On Tuesday, Intel launched Gaudi 3, an artificial intelligence chip. Intel says that Gaudi 3 is twice as powerful and efficient than Nvidia’s H100 GPU. This new product comes in different configurations. For example, it can be purchased in a bundle of eight on one motherboard. Moreover, Intel says that Gaudi can help to train or deploy models, including Stabel Diffusion or OpenAI’s Whisper’ model for speech recognition. This ambitious AI chip could help Intel to eat into Nvidia’s dominant share of the AI market with its GPUs.
Intel released its fourth quarter (Q4) and full year fiscal 2023 earnings back in January. In Q4 FY2023, the company posted revenue growth of 10% to $15.4 million. Meanwhile, it reported net income of $2.7 million. That was up from a loss of $0.7 million in Q4 FY2022. For the full year, Intel posted revenue of $54.2 billion – down 14% compared to the prior year.
This company has a steep hill to climb to compete with Nvidia in the generative AI space, but the release of Gaudi 3 has generated some interest. Investors should keep an eye on this computing stock in 2024 and beyond.
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