Intel (INTC) CEO Lip-Bu Tan Vows to Regain AI Leadership with New Strategy

We recently published a list of 14 AI News and Ratings Making Waves on Wall Street. In this article, we are going to take a look at where Intel Corporation (NASDAQ:INTC) stands against other AI news and ratings making waves on Wall Street.

According to a Fortune Business Insights report, the global data center market, valued at $242.72 billion in 2024, is expected to grow to $585 billion by 2032, at a compound annual growth rate of 11.7%. North America led the market in 2024, holding a nearly 39% share.

According to the report, generative AI is significantly impacting the sector, as its deep learning models require substantial computing power, scalable storage, and high-performance infrastructure. The market is also shifting towards hybrid and multi-cloud strategies, enabling organizations to integrate public, private, and on-premise solutions efficiently. Additionally, modular data centers are gaining traction due to their cost-effectiveness, scalability, and faster deployment compared to traditional facilities, the report stated.

Meeting AI Demand with Scalable and Sustainable Data Centers

The expansion of AI infrastructure through large-scale data center investments reflects the growing need for computational power. Companies are securing energy sources and developing specialized facilities to address scalability, sustainability, and efficiency challenges. For example, Related Companies is advancing into AI-driven data center development through its new division, Related Digital, using its expertise in renewable energy to meet rising demand from major tech firms.

In an interview at CNBC’s ‘Squawk on the Street,’ CEO Jeff Blau highlighted the company’s strategic move to assemble a specialized team to lead these projects. To support the growth, Related has secured sites with over five gigawatts of power across the U.S., investing $500 million of its own capital while planning to raise an additional $8 billion. With firms like Microsoft and Alphabet significantly increasing their capital expenditures, demand from hyperscalers remains strong. To mitigate risk, Related is securing long-term, 15-year commitments from tenants before beginning construction. Given the limited availability of power on the grid, Blau sees the company’s early investment in securing capacity as a major competitive advantage in the fast-evolving AI infrastructure landscape.

For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s Q4 database of over 1000 hedge funds.

At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 83

Intel Corporation (NASDAQ:INTC) designs and sells computing hardware, semiconductor products, and AI-driven solutions for various industries.

On March 27, Intel’s new CEO Lip-Bu Tan, in his letter to stockholders, acknowledged the company’s challenges while emphasizing opportunities for improvement. His focus is on regaining customer trust, improving execution, and advancing innovation. He highlighted cost-cutting efforts, including a $10 billion savings plan and workforce reduction, to streamline operations while maintaining significant investments.

Intel aims to strengthen its product lineup, with advancements in AI PCs, software partnerships, and upcoming launches like Panther Lake and Nova Lake. The company is also working to regain leadership in data centers with the Xeon 6 portfolio and the upcoming Clearwater Forest. Additionally, Intel is committed to developing a competitive foundry business, ensuring the success of its Intel 18A process, and expanding semiconductor production in the U.S. He further wrote:

“I recognize much work is needed to deliver the kind of results you expect with your investment. The entire leadership team and I are committed to improving our performance and positioning the business for future success. We will do so by putting customers at the center of everything we do — and we are moving ahead with confidence because we have an incredible team of employees that’s up to the challenge.

My pledge to you is that we will continue acting with urgency to strengthen Intel’s competitive position and cultivate a culture of customer-centricity needed to win in our markets. In the process, I’m confident we will deliver a greater return for you, our shareholders.

I am humbled and honored to be Intel’s CEO and appreciate the trust the Board has placed in me to lead our company. Thank you for your investment in Intel.”

Overall, INTC ranks 4th on our list of AI news and ratings making waves on Wall Street. While we acknowledge the potential of INTC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.