Intel Introduces Leading Edge Data Center GPU: Will it Boost Prospect?

Intel Corporation INTC recently announced the launch of the cutting-edge GPU chip, Crescent Island. The AI ecosystem is evolving rapidly. The focus is shifting from training big AI models with a large amount of data to AI inference workloads, that is, actually using the AI models in real time for various tasks. Intel’s new data center GPU is engineered to match the rising requirements of AI inference workloads.The GPU is based on Intel’s Xe architecture and is designed to be cost and energy-optimized for air-cooled enterprise servers. It offers high memory capacity and seamlessly supports high bandwidth requirements. Intel is also pushing for an open software and hardware ecosystem that will give hyperscalers greater control over the deployment and scaling of AI systems. The GPU supports a wide range of data types, making it suitable for inference applications and token-as-a-service providers.Per a report from Grand View Research, the global AI inference market, which is estimated at $97.24 billion in 2024, is projected to witness a compound annual growth rate of 17.5% from 2025 to 2030. Intel is steadily advancing its AI accelerator portfolio to capitalize on this market trend. With its Xeon 6 processors and GPU offerings, Intel intends to gain a competitive advantage across emerging verticals, such as AI PC, AI data center and industrial edge.How are Competitors Faring?Intel faces competition from NVIDIA Corporation NVDA and Advanced Micro Devices AMD. NVIDIA offers a comprehensive portfolio for AI inference infrastructure. The NVIDIA Blackwell, H200, L40S, and NVIDIA RTX offers remarkable speed and efficiency in AI inference across cloud, workstations and data centers.AMD Instinct™ MI350 Series GPU, featuring powerful and power efficient cores, has set a new benchmark in generative AI and high-performance computing in data centers. With NVIDIA’s dominance and AMD’s strong momentum, Intel faces a steep uphill battle in the AI inference domain.INTC’s Price Performance, Valuation and EstimatesIntel has gained 62.3% over the past year compared with the industry’s growth of 30.5%.Image Source: Zacks Investment ResearchGoing by the price/book ratio, the company's shares currently trade at 1.48 book value, lower than 37.33 of the industry average.Image Source: Zacks Investment ResearchIntel’s earnings estimates for 2025 have remain unchanged, while earnings estimates for 2026 have declined over the past 60 days. Image Source: Zacks Investment ResearchZacks Investment Research Intel stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks