What's Going On With Intel Stock Thursday?

Intel Corp INTC stock is trading higher Thursday as it announced new chips for PCs and data centers to expand its presence in the artificial intelligence hardware market. 

The new lineup includes an updated version of the Xeon server chips, offering enhanced performance, memory, and reduced electricity usage. 

Additionally, Intel introduced Ultra Core chips for laptops and desktops, enabling direct AI processing on these devices, Bloomberg reports.

Intel CEO Pat Gelsinger is focusing on AI to drive growth as Intel faces challenges from past missteps and a declining PC market. 

The company is competing against Advanced Micro Devices Inc AMD, which has gained market share in PCs and servers, and Nvidia Corp NVDA, a leader in AI accelerators. 

Also Read: Citi Analyst Predicts Intel And Micron As Biggest Beneficiaries In US CHIPS Act Push, Despite Regulatory Hurdles

Nvidia's AI products have significantly boosted its sales and valuation, potentially positioning it to surpass Intel in total revenue.

Intel's notable new product, the Gaudi 3 AI accelerator, is set to compete with Nvidia's H100 and is scheduled for release in 2024. 

Meanwhile, AMD is also entering the AI accelerator market with its MI300, expected next year, targeting a market that could grow to over $400 billion in four years.

Intel aims to differentiate itself by shifting AI processing to devices rather than data centers. 

Intel announced that their latest chip, codenamed "Meteor Lake," will be featured in laptops from significant PC manufacturers like Dell Technologies Inc DELL, Microsoft Corp MSFT, Lenovo Group, and others, Reuters reports. 

These laptops will likely go on sale at Best Buy Co, Inc BBY in the U.S. and at global retailers, including China's JD.com Inc JD and Australia's Harvey Norman. 

Meteor Lake is Intel's first chip to include a neural processing unit (NPU) dedicated to handling AI tasks. 

This feature, already present in smartphone chips from Apple Inc AAPL and Qualcomm Inc QCOM for over five years, marks a significant advancement for Intel's central processing units (CPUs), traditionally the brains of most personal computers.

Intel is betting on the new wave of AI applications to drive the demand for the "AI PC." The company expects this category to constitute 80% of PCs sold within four years.

Price Action: INTC shares traded higher by 4.54% at $46.57 on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.