We recently published a list of Top 10 AI News Everyone is Talking About. In this article, we are going to take a look at where Intel Corporation (NASDAQ:INTC) stands against other top AI news everyone is talking about.
Jim Cramer in a latest program on CNBC talked about the ongoing “rebellion” against the data center and the impact of tariffs on the broader market. Cramer said that data centers have been a key story in the stock market for months but now it’s losing steam due to a variety of factors. He also mentioned the weakening economic indicators.
“I know these tariffs have people on edge. Consumer confidence indicators have just plummeted. Interest rates are sinking for fear of an economy gone soft. The key 10-year Treasury yield is back to where it was in mid-December when many thought we were looking at many more rate cuts than we’ve gotten. We have had to put rate cuts talk on hold. Now it’s right back because there’s a newfound paralysis—too many things happening at once, scaring people.”
Cramer said that the “seeds of doubt” about data center chip demand were sown following the launch of DeepSeek and the market is still reeling from its effects.
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For this article we picked 10 AI stocks the market is buzzing about these days. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Investors: 68
Jim Cramer recently commented on Intel Corporation (NASDAQ:INTC)’s latest quarterly results on CNBC.
“I thought the cash flow was very good, better than I expected. The first quarter is historically not a great quarter for Intel Corporation (NASDAQ:INTC); it will not be a great quarter. But I think they’re trying to stabilize the ship by talking about how they have enough cash to be able to get through. There was no Messianic message about Intel. Don’t expect the stock to go up, but perhaps the trajectory will not be just straight.”
Intel Corporation (NASDAQ:INTC) latest results have increased fears the company will need a lot of time before seeing any kind of significant improvement. In the first quarter, the company sees revenue of $12.2 billion at the midpoint of its guidance, reflecting an 11-18% decline quarter-over-quarter. The company has also scrapped its plans to launch Falcon Shores, its next-generation AI GPUs. A few months back it was a key catalyst expected to debut in late 2025. Intel Corporation (NASDAQ:INTC) Clearwater Forest AI data center server CPUs, which were set to use its 18A chip (similar to TSMC’s 3nm nodes), have had their launch delayed from FY2025 to FY2026. These setbacks are likely to affect Intel’s already struggling Data Center & AI business segment. Consensus expectations suggest the company won’t see positive free cash flow for at least the next three years.
Invesco Growth and Income Fund stated the following regarding Intel Corporation (NASDAQ:INTC) in its Q3 2024 investor letter:
“Intel Corporation (NASDAQ:INTC): The chipmaker reported weaker-than-expected quarterly results as revenues declined and earnings were below expectations. Management also provided weaker guidance going forward; the stock fell on the news. We sold the position during the quarter.
The chipmaker’s quarterly earnings report was weaker than anticipated as revenues declined and earnings were below expectations. Management also provided weaker guidance going forward. Given that a potential recovery appears to be further in the future than we originally anticipated, we sold the position.”
Overall, INTC ranks 7th on our list of top AI news everyone is talking about. While we acknowledge the potential of INTC as investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.