Intel lost 5.7% of its PC market share to rival AMD in the third quarter of 2024, marking the largest gain for AMD in a decade. This highlights Intel’s challenge in innovating and maintaining its lead. Despite this, Intel still holds a significant 71.3% market share.
The problem is that the PC market is shrinking, with data centers shifting to GPUs. Intel focuses on salvaging the CPU market. At CES 2025, Intel launched the Core Ultra 200HX series for gaming laptops, which uses AI acceleration to improve performance and reduce power consumption.
This new CPU features a built-in Neural Processing Unit (NPU), enhancing its AI capabilities. Intel plans to build on this launch to secure its market dominance in the AI PC segment. The company also introduced H-series mobile processors with similar improvements and efficiencies.
Intel’s struggles are also reflected in declining revenue, which is partly due to customers leaving the company. Large corporations often have high switching costs, making it difficult for them to switch from Intel. CEO Pat Gelinger’s resignation suggests that Intel’s efforts to regain its former success haven’t yielded results yet.
The situation for Intel is further complicated by rivals Nvidia and Taiwan Semiconductor reaching all-time highs, while Intel’s stock remains stagnant. As of our latest data, 68 hedge fund portfolios still hold Intel stock, down from 75 in the previous quarter. While Intel has potential as an AI investment, other stocks may offer higher returns with shorter timelines.
Source: https://finance.yahoo.com/news/intel-intc-cpus-enough-regain-144302009.html