HANNIBAL HANSCHKE/EPA
A historic company was being portrayed as a giant in decline – but there are new results and new partnerships.
It may seem surprising, it may seem ironic, but the Intel represents next phase of the artificial intelligence boom (IA).
A unexpected recovery of Intel is surprising the markets and becoming symbol of this new phase, marked by a structural change in the technological sector.
Michael Maisch, finance editor at , begins by remembering that, for years, Intel was seen as a giant in declineunable to keep up with more agile rivals in developing AI chips.
You don’t even need to go back too far. Last year, the situation seemed critical: after a drop of more than 50%, shares were trading below 20 dollars and the group was even seen as a potential acquisition target.
But the scenario changed abruptly.
In fact, one month was enough: the bonds soared by more than 80%, reaching around 85 to 87 dollars (just over 70 euros), highs that had not been seen for around 25 years.
As?
This turnaround is due to several factors.
On the one hand, the company presented results quarterly results above expectations – driven by strong demand for semiconductors coupled with the growth of AI.
On the other hand, Intel established new partnerships strategic partnerships with major technology companies, reinforcing investor confidence.
However, the most decisive element was the recovery in demand for its traditional processors.
This trend reflects a broader transformation in the AI market.
Generalist hardware
After an initial phase dominated by complex model training — which favored highly specialized chipmakers — the sector is now evolving towards practical applications and disseminated in everyday life.
This movement benefits companies with a strong presence in generalist hardware, such as Intel.
Why the AI boom has entered a new stage: more focused on the practical application of technology and infrastructure that supports it.
It is a phenomenon that fits into a broader pattern in financial markets.
As in recent crises (geopolitical tensions, economic shocks), North American stock exchanges have demonstrated resilience, with rapid recoveries led by technology companies.
However, there is a relevant difference in the current phase: the growing divergence between winners and losers within the sector itself.
“Creative destruction”
According to analysts, companies hardware are taking over protagonism, providing the essential infrastructure for scaling AI.
At the other extreme, companies software and services face greater pressure, since their business models can be partially replaced by solutions based on artificial intelligence.
This process is often described as an accelerated example of “creative destruction”economic concept associated with disruptive innovation.
Despite the enthusiasm, they remain doubts regarding the sustainability of this appreciation. Only a minority of analysts currently recommend buying Intel shares, and price forecasts suggest limited near-term upside potential.
