Watch out for Intel in the AI ​​race, say analysts

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Intel stock was rising on Tuesday after a Melius Research analyst said in a note that investors should pay attention to the computer product and technology maker’s steps toward artificial intelligence.

Melius Research analyst Ben Reitzes rates Intel (ticker: INTC ) a buy with a $46 price target, which represents a 21% upside from the stock’s close on Monday.

When investors think of AI, they think of Nvidia ( NVDA ) and Advanced Micro Devices ( AMD ) as two major players, Reitzes said. But Intel’s AI chip, Gaudi, has been making some noise lately and is one of the reasons for the rally in Reitzes’ stock.

Reitzes says Wall Street hasn’t yet priced in what this AI chip could do for the company’s top line over the next few years.

“While Intel needs to continue to make inroads into software, the potential for hundreds of millions in Gowdy revenue is not in street models,” Reitzes wrote in a research note Monday.

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In the company’s latest earnings call in July, Chief Executive Patrick Gelsinger said Gowdy is one of Intel’s “strong, open options in the AI ​​market that competes against the competition on both performance and price.”

Reitzes isn’t the only analyst confident in Intel’s AI future. Raymond James analyst Srini Pajuri reiterated her outperform rating and $42 price target on Intel on Thursday, writing in a note that “while Intel may not get much credit for its AI efforts in the near term, we believe the company is well positioned.”

Shares of Intel rose 1.2% to $38.43 in premarket trading on Tuesday. Coming into the session, the stock is up 44% in 2023.

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Write to Angela Palumbo at

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