INTC Rolls Out Core Ultra Series 3 Chips: Will it Boost Prospects?

Intel Corporation INTC recently introduced the leading-edge Intel Core Ultra Series 3 processors. These are the first processors built on Intel 18A. This is a 1.8-nanometer-class chip manufacturing process engineered to deliver significantly higher performance and efficiency for AI and next-generation computing requirements.

AI in today’s world is not just an experimental tool or a niche capability. It has become a critical must-have component for organizations. Businesses are rapidly integrating AI to boost productivity, streamline workflows and drive innovation. Per a report from Precedence Research, the worldwide AI market is projected to grow from $757.6 billion in 2025 to $3.68 trillion in 2034 with a compound annual growth rate of 19.2%. OEMs, like HP, Dell and Lenovo, are developing AI PC lineups to match these requirements. Intel is expanding its portfolio of AI chips capitalize on this market trend.

Intel Series 3 chips are AI-first platforms that can rapidly accelerate AI adoption. The Intel Core Ultra X9 and X7 processors within the new processor lineup come with the highest performing Intel Arc Graphics. The chips can deliver 60% better multithread performance, 77% faster gaming performance and up to 27 hours of battery life. The chips can help OEMs to design high-performance and efficient laptops at a lower price.

Along with the AI PC domain, Intel is also expanding into the rapidly growing Edge AI landscape. The series 3 processors offer significantly better large language model performance, video analytics and higher throughput on vision language action (VLA) models. With its leading-edge features, the chips are certified for embedded and industrial use cases. This makes them ideal for edge AI deployment in smart cities, robotics, healthcare and others.

How Are Competitors Faring?

Intel faces competition from Advanced Micro Devices AMD and Qualcomm Incorporated QCOM in this space. AMD recently introduced the AMD Ryzen AI Embedded processors designed to facilitate AI applications at the edge.  With high-performance, efficient AI compute capabilities, it can effectively support edge AI applications in automotive digital cockpit, smart healthcare and other domains. Its flagship Ryzen AI 300 Series is also witnessing healthy traction.

QCOM took the market by storm with the launch of the Snapdragon X chip for mid-range AI desktops and laptops. Qualcomm has recently introduced the Snapdragon X2 Plus platform. The latest addition in the Snapdragon X series is designed to deliver ultra-fast performance, fluid multitasking for Windows 11 Copilot+ PCs. Qualcomm’s acquisitions of Augentix, Arduino, Edge Impulse, Focus.AI and Foundries.io have significantly expanded its capabilities in edge computing and edge AI.

INTC’s Price Performance, Valuation & Estimates

Shares of Intel have surged 101.1% over the past year compared with the industry’s growth of 32.1%.

Going by the price/book ratio, the company's shares currently trade at 1.61 book value, lower than 32.57 of the industry average.

Earnings estimates for INTC for 2025 have increased 6.3% to 34 cents per share, while those for 2026 have declined 6.5% to 58 cents over the past 60 days.

Intel stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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