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For nearly two decades, Intel (INTC) dominated the CPU market. This CPU dominance made Intel one of the world's most profitable semiconductor companies. However, with the start of the artificial intelligence (AI) boom, Nvidia’s (NVDA) GPUs became the center of attention, and CPUs became yesterday's technology, with Intel losing its edge. Ironically, AI is now restoring one of Intel’s core strengths. Intel’s Q2 earnings suggest that AI is evolving, and its decades-long leadership in CPUs may once again be turning into a competitive advantage.
Nonetheless, higher capex spending concerns continue to weigh on AI stocks. As a result, despite a better-than-expected quarter, INTC stock closed 7.8% lower on Friday and is still dropping in early morning trading today, but has still surged 146% year-to-date (YTD), outperforming the broader market.
