When we talk about AI stocks, the first name that comes up is Nvidia. After all, Nvidia has proven itself first and is a market leader for chips all over the world.
However, there is another stock that is also trending these days, and it's Intel (INTC). Intel is a popular computing company that is in the AI race but is lagging behind others.
But a key reason why Intel (INTC) is trending as of late is that the US government has bought a 10% share in the company. Many are seeing this as a good sign that will help the company to re-establish its position in the chip space.
quick look at the market reveals that Intel (INTC) is facing competition from ARM Holdings and AMD. According to analysts, the market share of Intel will decline to 55% this year. Meanwhile, the market share of AMD will increase to almost 36%.
Looking ahead, experts believe that the market share of Intel will even decline below the 50% mark by the year 2027. On the other hand, the market share of ARM and AMD will only increase over the years.
According to analysts, there are signs that the Intel (INTC) stock has now hit a bottom. Especially after the US government's buying of Intel shares, the stock is now ready to make a comeback.
This move by the US government is to encourage the manufacturing of semiconductors on US soil. As of now, Intel is the only company that produces semiconductors inside the USA and also does its own R&D.
But, it's also a reality that Intel is no longer the beast it once used to be and is now facing competition from other markets. So, while Intel can make a comeback, it will still be nowhere close to Nvidia.