GPUs, which are manufactured by companies such as Nvidia and Advanced Micro Devices, are central to powering artificial intelligence systems, particularly large language models. As AI infrastructure and data center demand accelerates globally, GPU development has become a key battleground for semiconductor companies.
Intel has seen its stock rally over the past year, driven by optimism around its foundry business. However, the company continues to primarily produce chips for its own use, and it has struggled to keep pace with leading semiconductor players that have benefited from the AI-driven data center boom.
In recent quarters, Intel has faced setbacks despite posting better-than-expected earnings. Earlier this month, production delays and supply-chain issues overshadowed the company’s quarterly results, and investors have been seeking more clarity on a major customer for its foundry segment.
The company’s position in the industry was further bolstered last year by major investments from the U.S. government, SoftBank and Nvidia, as Intel aims to expand its manufacturing and technology capabilities.
Tan also addressed the ongoing memory chip shortage affecting the broader technology sector. He noted that strong AI data center demand has created a supply-demand imbalance, enabling memory chip makers to continue raising prices. Tan described AI as the “biggest challenge” for memory and said he does not expect relief until 2028.