Intel’s (NASDAQ:INTC) push into software is progressing well, with an aim to reach $1 billion in cumulative revenue by the end of 2027, according to an interview given to Reuters by CTO Greg Lavender. Intel earned over $100 million in software revenue in 2021 and has since acquired three software companies. Lavender’s goal is to achieve $1 billion in software and developer cloud subscription revenue by 2027, possibly sooner.
Intel’s Focus on AI and Computing Services
In FY23, Intel generated total revenues of $54 billion. The company offers services and tools in cloud computing and AI, focusing on AI, performance, and security. Notably, Intel’s client computing, data center, and AI products accounted for more than 80% of the company’s total revenues in FY23.
that Intel is placing a strong focus on delivering services in AI, performance, and security. He highlighted the high demand anticipated for Intel’s upcoming Gaudi 3 chip, which aims to challenge Nvidia’s (NASDAQ:NVDA) dominance in the AI chip market.
Intel Supports Open Source Initiatives
Intel actively supports open-source initiatives and participates in the UXL Foundation, which aims to develop code compatible with any hardware platform. Additionally, Intel contributes to Triton, an initiative led by OpenAI to enhance AI chip efficiency through an open-source programming language. Collaborating with AMD (NASDAQ:AMD) and Meta (NASDAQ:META), Intel ensures Triton’s compatibility with its current GPUs and upcoming AI chips.
Lavender anticipates that Intel’s involvement in these open-source initiatives will lead to the creation of robust software and tools capable of powering a wide array of AI chips.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 24 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a more than 30% loss in its share price year-to-date, the average INTC price target of $38.02 per share implies 13.5% upside potential.
