Intel Corp. INTC saw a 2.34% rise in pre-market trading on Tuesday, after announcing its new Lunar Lake chips with advanced AI processors.
What Happened: At the ongoing Computex technology trade show in Taiwan, Intel CEO Pat Gelsinger revealed the company’s updated AI strategy, which aligns with Microsoft Corp. MSFT “Year of AI PC” initiative.
These chips are designed for Copilot+ AI PCs and data centers to compete with Advanced Micro Devices AMD.
Intel’s pre-market activity saw a spike after the announcement. At the time of writing, Intel was trading at $30.90. Meanwhile, AMD shares dropped 0.95% to $162.00, and NVIDIA NVDA shares also fell 0.77% to $1,141.20.
The Lunar Lake series, set to launch later this year, is the first to meet Microsoft's Copilot+ PC standards, boasting over 40 trillion operations per second for its NPU (TOPS) and 16GB memory. This series will offer significant improvements over the current Meteor Lake SoCs.
Why It Matters: The unveiling of Intel’s new Lunar Lake chips comes at a crucial time for the company, as it seeks to regain its competitive edge in the AI market. Recently, Intel has been focusing on increasing AI product demand and shifting towards private data storage solutions. This strategic move aims to balance between public cloud infrastructure and private data storage, addressing privacy and cost concerns.
Intel’s new chip also comes at a time when NVIDIA’s dominance in the AI sector has left competitors scrambling to catch up. NVIDIA’s data center business alone generated a record $47.5 billion in 2023, driven by the demand for computing power to train AI models. This has pushed Intel to intensify its efforts to challenge NVIDIA’s market position.
Intel’s announcement follows AMD CEO Lisa Su’s introduction of the MI325X accelerator at Computex 2024, expected to be available in the fourth quarter of 2024. Additionally, NVIDIA CEO Jensen Huang also delivered a highly praised keynote address at the event with the hopes of attracting the attention of market watchers and analysts.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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