Intel Explores Acquisition of AI Chip Startup Tenstorrent; Citi Projects 47% AI CPU Share
INTC has more than doubled off its 52-week low of $18.965.
Summary
Intel is reportedly in exploratory talks to acquire AI chip startup Tenstorrent, a move that signals a strategic push into the rapidly growing AI sector. This potential acquisition, alongside Qualcomm also being in discussions, could significantly enhance Intel's AI capabilities and market position. Concurrently, Citi analysts project Intel to capture a substantial 47% of the AI server CPU market by 2030, raising its data-center sales outlook and highlighting upside from Intel's ASIC business. This positive long-term outlook from Citi, coupled with Benchmark raising its price target to $140, provides a counterpoint to recent concerns about Intel's server CPU share decline and foundry unit losses. Traders will be watching for any formal announcements regarding the Tenstorrent talks, as a successful deal could be a material catalyst for Intel's AI strategy.
At the time of this announcement, INTC was trading at $111.85 on NASDAQ in the Technology sector, with a market capitalization of approximately $556.9B. The 52-week trading range was $18.97 to $132.75. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.