Can Intel's AI Push With Infosys Deal Drive Long-Term Growth?

Intel Corporation INTC is expanding its enterprise AI strategy through a deeper partnership with Infosys Limited INFY to help businesses move from AI experiments to large-scale, real-world deployments. The collaboration combines Intel’s computing infrastructure with Infosys’ AI software to speed up enterprise adoption of advanced AI solutions.

Per the deal, Intel will pair its computing technologies with Infosys Topaz Fabric to build a flexible ecosystem that supports AI deployment from edge devices to cloud data centers. The initiative will also optimize AI workloads on Intel Xeon processors, Intel Gaudi AI accelerators, and AI-enabled PCs to help businesses run AI efficiently while balancing performance, security and cost.

Through this alliance, Intel aims to enable right-sized AI infrastructure that helps enterprises deploy AI solutions aligned with their operational needs while controlling computing costs. It will also support advanced AI agents and enterprise workloads, allowing organizations to run secure, monitored and reliable AI systems in complex and regulated environments.

Beyond this, Intel also launched its next-generation Panther Lake AI chip for PCs, enhancing AI performance and efficiency in personal computing. The company has also advanced AI adoption through initiatives like the AI???PC Acceleration Program and edge AI software suites, helping developers and enterprises run AI workloads more effectively.

With the AI market projected to grow rapidly in the coming years, Intel is well-positioned to capitalize on this expansion by providing cutting-edge AI hardware and software solutions. Its focus on scalable, efficient and secure AI infrastructure aims to drive widespread enterprise adoption and support the next generation of AI-driven innovation.

How Are Rivals Performing in the AI Space?

Intel faces competition from NVIDIA Corporation NVDA and Advanced Micro Devices AMD. NVIDIA has continued to push its leadership in AI infrastructure by investing heavily in new technologies like photonics to boost data center performance and supporting major AI ecosystem developments. It has also invested in a U.K.-based AI infrastructure startup, Nscale, which recently secured $2 billion in funding, highlighting its broader push to grow AI capabilities and extend its influence beyond chip production.

AMD has strengthened its AI presence by signing a multi-year deal with Meta Platforms to deploy up to 6 gigawatts of AMD Instinct GPUs for next-generation AI infrastructure. It has also expanded its AI chip lineup with Ryzen AI 400 Series processors and partnered with Nutanix to deliver a scalable enterprise AI platform powered by AMD CPUs and GPUs.

INTC’s Price Performance, Valuation & Estimates

Shares of Intel have surged 117.9% over the past year compared with the industry’s growth of 61.2%.

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Going by the price/book ratio, the company's shares currently trade at 1.72 book value, lower than 26.48 of the industry average.

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INTC’s earnings estimates for 2026 have declined 15.5% to 49 cents per share, while those for 2027 have declined 12% to 98 cents over the past 60 days.

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Intel stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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