If you’re not paying attention to the explosive growth in artificial intelligence, you’re missing out on what could be the investment opportunity of a lifetime. As my colleague Eric Fry recently pointed out, “The AI market itself is on the verge of explosive growth. The analysts at IDC estimate that worldwide spending on AI systems will nearly triple to $300 billion by 2026. From that level, McKinsey & Co. predicts the AI market will soar to $1 trillion by 2030.”
Yes, you read that right. We’re talking TRILLIONS of dollars up for grabs. And one company is positioning itself to capture a huge chunk of that windfall and potentially join the exclusive trillion dollar market cap club. That company is none other than semiconductor giant Intel Corp. (INTC).
As Eric explains, “Intel already stands at the ready with a roster of offerings that can help power the AI Revolution.” This includes their cutting-edge AI focused chips like the NCS2 for deep learning and the Gaudi line which accelerates the complex math calculations powering today’s AI.
But Intel isn’t resting on its laurels. They just announced their upcoming 6th generation Xeon chip with models optimized for both power and efficiency. Plus, their Gaudi 3 AI chip undercuts rivals Nvidia and AMD on price while delivering comparable performance. As Intel CEO Pat Gelsinger put it, “Customers are looking for high-performance, cost-effective gen AI training and inferencing solutions. And they’ve started to turn to alternatives like Gaudi. They want choice.”
Customers are looking for high-performance, cost-effective gen AI training and inferencing solutions. And they’ve started to turn to alternatives like Gaudi. They want choice.
Pat Gelsinger
By offering that choice and value, Intel aims to steal market share from AI chip leader Nvidia which currently dominates with an estimated 80% share. But the opportunity for Intel goes beyond the data center. The rise of AI is going to force a major PC upgrade cycle as consumers and businesses scramble to get machines with the power to run demanding AI applications. As a leading PC chipmaker, Intel is primed to ride that wave.
If Intel can execute on this AI opportunity, the earnings potential is mind-boggling. Eric highlights analyst estimates showing Intel’s profits jumping from around $1 per share this year to $1.90 next year, $2.50 in 2026, and $3.35 in 2027. As he puts it, “If Intel comes anywhere close to producing that earnings trajectory, its share price could double easily… or deliver even larger gains.”
If Intel comes anywhere close to producing that earnings trajectory, its share price could double easily… or deliver even larger gains.
Eric Fry
Of course, nothing is guaranteed in the stock market. But for investors who understand the sheer magnitude of the AI revolution, Intel looks like a smart way to play it with multi-bagger potential. If you wait on the sidelines, you risk missing out on what could be a $1 trillion opportunity.
But Intel is far from the only way to profit from AI’s rise. Visionaries like Elon Musk are pushing the boundaries of what’s possible, with his Neuralink venture aiming to harness the power of AI to cure paralysis, blindness and deafness.
While Neuralink is currently private, Eric has identified a well-known public tech company that he believes offers backdoor exposure to Neuralink’s exciting growth story. To get all the details on this pick, simply click here.
The AI gold rush is here. Make sure you stake your claim before it’s too late.
