Intel will need 'turnaround for the ages' to catch up in AI: Wedbush's Ives at SA Summit
Wedbush Securities did not mince its words when it came to discussing U.S. chipmaker Intel (NASDAQ:INTC) and the way it has handled the early stages of the artificial intelligence (AI) revolution.
Intel (INTC) is widely seen as having fallen behind rivals such as Nvidia (NVDA) and Advanced Micro Devices (AMD) in terms of creating new generation processors and AI chips.
"In my opinion, that's the biggest head-scratcher in tech," Dan Ives, managing director of equity research at Wedbush Securities, said at the Seeking Alpha Investing Summit on Tuesday, referring to Intel's (INTC) inability to move forward in AI.
Ives added that one should look up the word "debacle in the dictionary" to describe Intel's (INTC) situation.
"I think (with INTC chief executive Pat Gelsinger), the big problem that they have is trying to turn that around, getting some piece of this next phase - 2025, 2026 - in terms of the AI revolution. But I'll bet on Lisa Su and AMD over Intel (INTC) right now, relative to where we are," the Wedbush analyst said.
Intel (INTC) earlier this month unveiled its next generation Xeon server processors and said its Gaudi AI accelerator chips would be priced much lower than its rivals' products at the Computex tech conference in Taiwan. Intel's (INTC) announcements were seen as it trying to regain data center market share.
"They're going to have to make aggressive moves ... I think Gelsinger can turn this around, but this will be a turnaround for the ages," Ives added.
At the same session at the Seeking Alpha Investing Summit, Ives praised Apple (AAPL), while also issuing some comments on Microsoft's (MSFT) leading position in AI.
Seeking Alpha editor Max Gottlich contributed to this story