Intel (NASDAQ: INTC) stock popped in Monday's trading. The semiconductor company's share price ended the session up 6.2%, according to data from S&P Global Market Intelligence.
Intel stock jumped today thanks to bullish coverage from an analyst. The chip giant's share price also got a boost due to excitement surrounding upcoming processors that could strengthen the company's position in the artificial intelligence (AI) space and gaming hardware market.
One analyst thinks Intel is a top AI play for 2024's second half
Intel stock got a boost Monday thanks to bullish coverage from Melius Research analyst Ben Reitzes. On the heels of explosive valuation gains for Nvidia and other AI leaders, Reitzes went looking for top artificial intelligence plays in the second half of this year. And he thinks that Intel has what it takes to deliver wins.
In particular, Reitzes sees Microsoft's new Recall AI being a potential demand tailwind for Intel. The Recall feature will allow users to easily snap back to early points in their computers' data history, and the analyst thinks it could be a meaningful catalyst for devices built using Intel's Lunar Lake central processing unit (CPU) line for PCs and mobile. Lunar Lake could debut this year or early in 2025.
Intel is trying to be a bigger player in GPUs
Reports also emerged over the weekend that Intel is gearing up to launch a new graphics processing unit (GPU) that is set to be fabricated by Taiwan Semiconductor Manufacturing. The Battlemage processor for PCs is said to use TSMC's four-nanometer (4nm) node platform and is expected to launch in 2025. The upcoming processor is targeted at the gaming market rather than the data-center market that is at the heart of the AI revolution, but investors seem to be bullish about Intel's efforts to expand in the GPU space.
Should you invest $1,000 in Intel right now?
Before you buy stock in Intel, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $771,034!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of July 8, 2024
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
