Intel stock rises as CEO Lip-Bu Tan touts 'exciting new products' with Nvidia
Intel's stock surged over 2% after CEO Lip-Bu Tan announced collaborative 'exciting new products' with Nvidia, including AI-focused data center solutions and integrated consumer PC chips, while also confirming a preliminary deal with Apple to produce chips for its devices. The partnership aligns with Intel’s foundry ambitions and AI-driven growth, with Q1 revenue for its foundry segment rising 16% year-over-year to $5.4 billion, and Q2 revenue projections exceeding analyst expectations.
Intel’s stock rose more than 2% in early trading after CEO Lip-Bu Tan posted on X that the company and Nvidia are developing 'exciting new products.' The collaboration, announced in September, includes connecting Nvidia’s GPUs to Intel’s CPUs for AI workloads and integrating Nvidia’s RTX GPU chiplets into Intel’s consumer PC chips. Nvidia also took a $5 billion stake in Intel as part of the deal. Intel’s foundry business, a key driver of its turnaround, generated $5.4 billion in Q1, up 16% year-over-year. The company aims to compete with TSMC as a contract chip manufacturer for major tech firms like Apple, Nvidia, AMD, and Qualcomm. Intel’s largest customer is its own foundry segment. The partnership follows a Wall Street Journal report that Intel and Apple have reached a preliminary agreement for Intel to produce chips for some Apple products, though specifics remain unclear. Intel’s stock has surged 245% year-to-date and 494% over the past 12 months, fueled by AI demand and its role in powering CPUs for AI-driven tasks like file sorting and presentation creation. Intel’s Q1 earnings beat Wall Street projections, and its Q2 revenue outlook of $13.8 billion to $14.8 billion exceeded analyst expectations of $13.03 billion. The company’s growth reflects a shift from its past struggles, leveraging AI’s rise to regain investor confidence and market relevance.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.