Intel considers strategic realignment: Spin-off of the foundry business planned

Artificial intelligence (AI) is increasingly becoming an indispensable tool for large companies, promoting efficiency, innovation, and competitive advantages. The significance and impact of AI technology are reflected in substantial investments and impressive returns. Companies are utilizing AI to automate and optimize business processes, which, according to a report by McKinsey, can lead to an increase in cash flow by 20-25%. In the financial sector, AI is revolutionizing risk management, fraud detection, and customer analytics. For instance, JPMorgan Chase uses AI to review legal documents, a task that previously required thousands of hours of manual labor and can now be completed in seconds. In the pharmaceutical industry, AI accelerates the process of drug discovery, with companies like Pfizer analyzing large datasets to identify potential drug candidates more quickly. This not only shortens the time to market for new medications but also reduces the average research and development costs, which can amount to approximately $2.6 billion per drug. Meanwhile, retail giants such as Amazon and Walmart employ AI algorithms to analyze customer behavior and preferences, providing personalized recommendations that enhance the shopping experience and boost sales. Amazon’s recommendation system, powered by AI, accounts for 35% of the company’s total sales. Another example of success through AI is NVIDIA. The company reported $30 billion in revenue for the second quarter of the fiscal year 2025, with a significant portion of this amount attributable to the use of AI. NVIDIA’s GPUs are the backbone of many AI models used across industries, from autonomous vehicles to large-scale data analysis. Amidst these developments, Intel Corporation is also attracting attention. Reports suggest that Intel is considering spinning off its foundry business to support the company’s turnaround and mitigate ongoing losses. Despite extensive layoffs and a restructuring of its product portfolio, the pressure remains high on Intel to develop a chip that can compete with NVIDIA’s models in the AI sector. Analyst Ming-Chi Kuo of TF International Securities commented on recent developments, speculating that Lip-Bu Tan’s resignation from Intel’s board might be related to the planned spin-off. Since reports of the potential spin-off, Intel has seen a slight uptick in its stock price. Nevertheless, the stock remains ranked only 17th on our list of AI stocks making headlines this week. While Intel has potential as an investment, we believe that some other AI stocks offer greater opportunities for higher returns in a shorter period. A detailed report on the most promising and affordable AI stock is available.