Intel hopes its new chip can be the future of AI. An executive explains how

Intel is embarking on a transformative journey, backed by a significant investment from the previous administration, aiming to redefine its corporate strategy. Central to this initiative is a renewed focus on artificial intelligence, a field where the company has fallen behind competitors like Qualcomm and Nvidia over the past decade. Although Intel continues to lead in the production of laptop and desktop processors, it faces mounting pressure from rivals. Under the leadership of CEO Lip-Bu Tan, who assumed his role in March, the company has unveiled a turnaround strategy that includes the newly launched Core Ultra Series 3 chip. This chip is set to feature in a wide range of new laptops this year, but Intel recognizes the need to expand its chip applications beyond personal computers to excel in AI technologies. Jim Johnson, head of Intel’s client computing group, emphasized the vast potential for growth in AI-powered devices, including robots, during an interview at the CES tech conference in Las Vegas. “The devices between PCs and the cloud are almost infinite,” he noted, highlighting the company’s ambition to diversify its product offerings. Despite maintaining a dominant market share—over 71% of the PC chip market according to the International Data Corporation—Intel is contending with fierce competition from AMD and the shift of Apple to its proprietary processors in 2020. Additionally, the company has had to make difficult decisions, including a workforce reduction of 15% last year, with stock prices taking a hit of more than 18% over the past five years. The new chip aims to enhance Intel's core PC business by not only improving traditional performance metrics like battery life but also optimizing capabilities for AI applications. This includes enhancing performance for coding tasks and video conferencing platforms that leverage AI for better functionality. The company anticipates that this chip will support over 200 new PC designs. In the rapidly evolving tech landscape, Intel faces a challenge to meet diverse consumer demands, as highlighted by Johnson: “What does a reporter need may be different from what a gamer wants.” Meanwhile, AMD has introduced new chips capable of processing larger AI models on laptops independently from the cloud, a feature that enhances privacy and reduces latency. Qualcomm is also competing aggressively in the laptop sector, unveiling a new chip with multi-day battery life tailored for AI tasks. As Intel strives to avoid past miscalculations, it is not only focusing on consumer desires but also on producing chips that outpace competitors. Tan has encouraged open communication about customer satisfaction and operational challenges, indicating a hands-on approach to leadership. Looking toward the future, Intel is exploring emerging sectors such as humanoid robotics for potential growth. Oversonic Robotics, a company developing robots for healthcare, has decided to transition from Nvidia to Intel’s Core Ultra 3 chip due to cost-effectiveness and superior performance, as the latter does not require cloud connectivity for processing. Nonetheless, Nvidia remains a critical player in the AI sector, with its chips powering data centers that drive AI services, helping the company achieve a market valuation of $5 trillion. Nvidia's advancements in robotics were also showcased at CES, demonstrating its ongoing commitment to this technology. Despite the uncertain demand for humanoid robots, Johnson is optimistic about Intel's trajectory. The company's stock has seen significant growth, with shares increasing approximately 84% in 2025 and nearly 98% year-over-year. Additionally, the U.S. government's acquisition of a 10% stake in Intel last year may bolster investor confidence in the company's future. “I see Intel getting back in shape like it used to be,” Johnson expressed confidently.