Intel’s (INTC) turnaround effort is getting a strong boost from the global AI buildout, which is driving increased demand for its central processing units (CPUs).
But the company is also expanding further into the graphics processing unit (GPU) market with the debut of its Intel GPU D-Series processors. Formerly codenamed Crescent Island, the D-Series chips are designed for AI inferencing, running AI models and services.
Rather than individual chips that slot into server blades like Nvidia’s (NVDA) Blackwell processors, Intel’s D-Series GPUs are deployed via PCIe cards, similar in appearance to the graphics cards gamers install in desktop computers.
Intel says it’s working with a number of OEMs, ODMs, neoclouds, and others to roll out D-Series systems, including ASUS, HPE (HPE), Dell (DELL), Supermicro, and others.
Intel has been working to gain a greater foothold in the GPU market, ranging from consumer products to the data center, including its Gaudi AI accelerator and GPU Flex Series cards.
Intel stock is up 183% year to date and roughly 175% over the last 12 months, thanks largely to interest in its CPUs.
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The processors, which fell out of favor in the early days of the generative AI explosion, have become increasingly important for AI providers and data center builders with the advent of AI agents.
That’s because while GPUs and AI accelerators power the AI models and agents that rely on them, the tasks agents perform, such as sorting through databases, launching apps, loading websites, and more, run on CPUs.
But Intel is facing increasing competition in the CPU data center race from longtime rival AMD (AMD), which is rapidly growing its share of data center revenue in the space.
Arm-based (ARM) CPUs are also gaining a greater foothold in the data center thanks to Nvidia’s decision to launch standalone CPU racks running its Grace chip.
Qualcomm (QCOM) has also entered the fight with its own Arm-based CPUs, AI accelerators, memory products, and networking capabilities, as it seeks to diversify beyond its reliance on the smartphone market.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.
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