Intel Taps Micron Leader To Strengthen AI Chip Strategy

Intel Corp INTC tapped Dr. Naga Chandrasekaran of Micron Technology, Inc MU as chief global operations officer, executive vice president and general manager of Intel Foundry Manufacturing and Supply Chain organization, effective August 12.

Chandrasekaran, an Oklahoma State University, University of California, Berkeley, and University of California, Los Angeles alumni, served as Micron’s senior vice president for Technology Development.

Chandrasekaran took over from Keyvan Esfarjani, who has decided to retire from Intel after nearly 30 years of service. 

Also Read: AMD Delays Desktop CPU Zen 5 Processor Launch – What’s Going On?

Chandrasekaran will lead Intel Foundry’s worldwide manufacturing operations, including Fab Sort Manufacturing, Assembly Test Manufacturing, strategic planning for Intel Foundry, corporate quality assurance, and supply chain.

The Intel Foundry business combines all the critical components that fabless customers need to design and manufacture chips for a new era of AI-driven computing.

The leadership change will be crucial for Intel as it sets ambitious targets, including $1 billion in software revenue before 2027, up from over $100 million in 2021, where its upcoming Gaudi 3 chip will play a key role.

Intel remains aggressively invested in its AI ambitions. It expects to ship chips for over 100 million AI PCs by 2025, including over 40 million in 2024.

In the second quarter of 2024, DNB Asset Management, with AUM of $88 billion, more than doubled its investment in Intel.

Intel stock lost 8% in the last 12 months. Investors can gain exposure to the stock through Invesco QQQ Trust, Series 1 QQQ, and SPDR S&P 500 SPY.

Intel Stock Prediction For 2024

Intel’s revenue growth in FY23 was -14.0%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.2%, growing 2.6% from last year. The unemployment rate was most recently reported as 4.1%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Intel stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against Intel's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Intel operates in the Information Technology sector. The stock has experienced average annual growth of -16.55% compared to the 12.31% average of its peer companies. This is below the broader sector movement of Intel.

Price Action: INTC shares are down 0.14% at $31.66 at the last check Thursday.

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