Intel CEO Lip-Bu Tan has done a complete 180 of the chipmaker’s future. Just a year ago Intel was trading at $19 a share, now it’s over $100. Tan has dove headfirst into AI and revitalized the company’s manufacturing business.
Earlier this week Intel announced a deal with Alphabet’s Google to make 3 million in-house chips. That along with Intel’s Nvidia partnership to make x86 chips to integrate into Nvidia’s RTX chips, and its deal with TeraFab AI project solidify Intel’s position in the AI world.
These major deals speak tell investors that Intel is an AI giant. SoftBank invested $2 billion in Intel, and Nvidia invested $5 billion because they both understand Intel’s position in AI infrastructure. Even the White House gave Intel almost $9 billion.
Bank of America gave Intel a rare double upgrade, raising Intel’s price target to $135 from $96, saying that they believe the company will make a deal with Apple. Wells Fargo raised its target from $85 to $110, Citi from $95 to $130, Benchmark from $105 to $140.
These are big increases from Wall Street, Intel’s expectations seem to keep growing and Lip-Bu Tan is doing a fantastic job meeting them. Intel will continue to make deals and solidify itself in AI, Tan is certain of that.
