Intel: A Potential Winner Of AI Inference

The biggest AI winners so far have been companies that made AI model training possible. Think of Nvidia, for example. Today, there is strong evidence to suggest that AI technology is moving from model training to inference. Industry data from Grand View Research confirms this. According to several industry reports, inference spending will account for 80% to 90% of lifetime AI costs. According to Deloitte, inference accounted for just one-third of AI costs in 2023. According to TrendForce, the CPU:GPU ratio in agentic AI applications is somewhere around 50:50, whereas for traditional LLM applications, this ratio is around 20:80 in favor of GPUs.

The rise of agentic AI and the shift to AI inference tilt the odds in favor of Intel given its strong inference product portfolio. Intel Corporation (INTC) has delivered far better than I expected since I turned bullish in September 2024. Intel's spark is certainly back. The company has made its presence felt in the AI chip sector as well, a much-needed outcome for the company.