Intel designs and manufactures semiconductor chips, with a focus on microprocessors for personal computers, servers, and other devices. Its core product is the CPU on a single silicon chip, which executes instructions, handles arithmetic and logic operations, and coordinates the work of other computer components. Intel originated in memory chips but shifted decisively to microprocessors in the 1980s, becoming a central supplier for the PC era after the IBM partnership and its famous x86 processor line. This shift, large-scale manufacturing, and close ties with computer makers set Intel apart from competitors who remained focused on memory or other components. The company aims to power computing by delivering high-performance, energy-efficient silicon solutions that drive a wide range of computing devices and applications.
Company Size
10,001+
Company Stage
IPO
Headquarters
Santa Clara, California
Founded
1999
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Intel chief executive officer Lip-Bu Tan reportedly said Chinese AI models such as DeepSeek, Kimi, and GLM are "good enough" and cost less per token. He said adoption has been "very fast," according to Reuters. Tan added, "I'm a strong believer of open source; that's the best way to drive efficiency." He said markets will decide which models suit which uses. Intel could gain if cheaper inference drives wider AI deployment and demand for its CPUs and servers. In the second quarter, revenue rose 25% to $16.13 billion, while the Data Center and AI segment grew 59%. Intel shares fell as much as 1.6% in pre-market trade, though they have more than doubled this year.
Elon Musk's Terafab project could give Intel (NASDAQ: INTC) a boost in its effort to rebuild its chipmaking business. The proposed semiconductor plant in Grimes County, Texas, brings together Tesla and SpaceX to reduce their reliance on outside chipmakers. The two companies have committed initial investments of $16.8 billion for the first phase. Terafab would combine chip design, logic and memory manufacturing, and packaging. Musk's long-term goal is enough annual output to support 1 terawatt of computing power. One category of chips would power Tesla's autonomous vehicles and Optimus humanoid robots. The other would support SpaceX's planned space-based data centres. Intel's role was confirmed in April. In the second quarter, Intel Foundry made $5.8 billion in revenue, but only $293 million came from external customers. The division posted an operating loss of about $2.1 billion.
A Motley Fool analysis picks NVIDIA over Intel as the better artificial intelligence stock for 2026, citing growth, value, and market position. NVIDIA's revenue for the year ended January 25, 2026 rose 65.5% to $215.9 billion, with net income of $120.1 billion. Intel's 2025 revenue slipped 0.5% to $52.9 billion, with a net loss of $267.0 million. Intel shares are up more than 180% over 12 months, against about 25% for NVIDIA. NVIDIA's forward price-to-earnings ratio is 24.7x, versus 67.7x for Intel. The author also points to NVIDIA's $150 billion addition to its share repurchase programme and its CUDA software, which keeps customer switching costs high.
Semiconductor stocks fell in the week ended October 9 after a strong start to the month. The Financial Times reported that OpenAI told investors its annualised revenue was nearing $50 billion at the end of September, below the roughly $70 billion cited in media reports. Chip valuations are closely tied to expectations for AI infrastructure spending, so the PHLX Semiconductor Index finished the week lower while the broader market held up better. The index was up 73% year to date as of late September. Higher long-term Treasury yields and rising oil prices added pressure. Among individual stocks, TSMC reported September revenue of NT$511.86 billion, up 54.6% from a year earlier. Intel fell after Elon Musk suggested TSMC could join his Terafab chip project in Texas, and Arm shares dropped during its licensing trial with Qualcomm.
Broadcom looks a better buy than Intel in 2026, according to a comparison of the two chipmakers, thanks to its faster growth and lower forward price-to-earnings ratio (32.2x against 73.1x). In fiscal 2025, Broadcom's revenue rose about 24% to nearly $64 billion, with net income of roughly $23 billion. Intel's revenue fell about 0.5% to nearly $53 billion, with a net loss of roughly $267 million. Analysts expect Broadcom's revenue to jump 66% to $106 billion this year, driven by custom AI chips for hyperscalers. They see Intel's sales rising 19% to $62.3 billion, with an $11 billion net loss as it expands its US foundries. Intel's foundry push includes the Terafab AI chip plant project and a deal with Nvidia.