Stock Talk
Yesterday’s Jones Report highlighted the power-chip side of the AI buildout through NVTS, with GFS tied in as the U.S.-based manufacturing angle.
Today’s stronger-than-expected report from Intel Corporation (INTC) highlights another understated trend now coming to light — AI data centers do not run on GPUs alone.
Intel has been a Jones watch stock, and today’s report is showing why.
Training is the heavy computing process of teaching AI models, while inference is when those trained models are put to work answering questions, making decisions, and serving users in real time. Today’s AI data centers do both, and upgraded Xeon 6 CPUs, including Granite Rapids and Sierra Forest, appear to be gaining traction as Intel plays a bigger role in supporting both sides of that equation.
For years, Intel carried the heavy lift of designing advanced chips while also building them in its own American fabs — a costly path that may have weighed on earnings while others outsourced production. But that same strategy may now be looking wiser, especially with geopolitical concerns about America being too dependent on outsourcing. Intel is advancing into 18A process technology with U.S.-based production centered in Arizona and development leadership in Oregon.
Looking further ahead, others, such as Elon Musk, have already signaled interest in Intel’s future 14A process for projects tied to Tesla, SpaceX, and broader ambitions. Whether that becomes large business or not, it suggests Intel’s roadmap is being noticed beyond today’s quarter.
Apparently, the market is starting to notice.
That said, the stock also ran hard on the report, and sharp moves can cool off before the next leg higher. If one sees the trend but is not yet involved, there may be no need to rush in. Sometimes just watching and/or just edging in with small portions to test the market and future can be a way to roll with it.
Stay Watchful.
- Jones Report
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside our control. So, we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
