Previously, Intel Stock (INTL) held over 80% of the central processing unit (CPU) market share. For many years, the company served as the primary chip supplier for Apple’s MacBook lineup. However, innovations from competitors have propelled Intel into a position where it must now play catch-up in the technology race, especially among top technology stocks.
Market Share Erosion: AMD’s Rise and Apple’s Shift
Intel’s competitor, Advanced Micro Devices (AMD), began gradually chipping away at Intel’s CPU market share in 2017, reducing it to 63% today. Additionally, in 2020, Apple ceased collaboration with Intel in favor of its own powerful, in-house hardware developments. These events have led to a gradual decline in Intel’s stock value over the past three years, disappointing investors.
Intel Stock Strategic Response
Currently, Intel is taking proactive steps to regain technological initiative in the coming years. Last year, Intel announced the implementation of an in-house foundry model, projected to save the company $10 billion by 2025.
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Artificial intelligence investments
Intel is investing heavily in artificial intelligence (AI). In December 2023, the company introduced a range of AI chips, including the Gaudi3, a graphical processing unit (GPU) designed to challenge market leader Nvidia. Intel also showcased new Core Ultra processors and Xeon server chips, incorporating neural processors for more efficient AI program execution.
Challenges and Future Outlook
Despite these advancements, Intel still has much ground to cover to catch up with its AI-focused competitors, particularly among top technology stocks. Intel Stock earnings per share could reach nearly $3 over the next two years if the company’s plans materialize, enabling it to surpass its technological rivals and potentially resume a growth trajectory.
Intel’s Path to Technological Redemption
As Intel navigates through the challenges posed by market shifts and technological advancements, investors should monitor the company’s strategic initiatives closely, especially in relation to top technology stock. Intel Stock success in reclaiming technological leadership could pave the way for renewed growth opportunities.
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