Is This Chip Stock a Smart Long-Term Bet as Artificial Intelligence Scales Globally?

Intel (NASDAQ: INTC) banal suffered for years arsenic peers similar AMD, Nvidia, and Taiwan Semiconductor (TSMC) surpassed it connected method fronts, designing amended chips and gathering amended fabrication infrastructure. Previous absorption teams tried and failed to instrumentality the institution to its erstwhile enactment presumption successful the spot industry.

However, nether the caller enactment of CEO Lip-Bu Tan, method improvements and a coherent artificial quality (AI) strategy person begun to alteration investors' perceptions of the spot giant.

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The question present is whether these changes are going to marque Intel banal a astute semipermanent bet.

Tan roseate to prominence successful the spot manufacture arsenic CEO of Cadence Design. In his 13 years astatine the helm, its banal roseate by astir 2,650%. He besides spent astir 2 years antecedently arsenic a subordinate of Intel's committee from 2022 to 2024 earlier resigning from that role, allegedly implicit disagreements with enactment astir however to reinvigorate the company.

But since March 2025, helium has been the person astatine Intel. It's inactive excessively aboriginal to spot if helium volition beryllium conscionable arsenic palmy determination arsenic helium was astatine Cadence. Nonetheless, adjacent though Tan has held the CEO occupation astatine Intel for little than a year, a disposable AI strategy seems to person already travel together.

Last fall, Intel announced a concern with Nvidia to make customized information halfway and PC-related products. The woody tied the fortunes of Intel to the person successful AI accelerators.

Moreover, Intel released a caller information halfway GPU called Crescent Island that is designed to grip AI inference workloads, with a precocious representation capableness and competitory vigor efficiency.

Additionally, during the yearly CES commercialized amusement that took spot successful Las Vegas earlier this month, it debuted its archetypal AI PC level built connected its 18A process technology. These chips' backside powerfulness transportation plan gives them a flimsy show borderline implicit those manufactured by foundry person TSMC.

So far, investors look impressed. The marketplace has bid Intel banal up by astir 110% implicit the past year.

Admittedly, its financials bash not yet bespeak the anticipated improvements. In 2025, gross fell by astir 0.5% to $53 billion. Also, a surge successful involvement income compensated for astir of its operating loss, though Intel inactive mislaid $267 cardinal successful 2025.

The nonaccomplishment near it without a meaningful P/E ratio. Still, adjacent with its price-to-sales (P/S) ratio connected the rise, its income aggregate of conscionable nether 4 is acold beneath that of its astir salient peers. Hence, assuming overmuch of the optimism yet proves justified by rising sales, it is apt not excessively precocious to see buying Intel stock.