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    Did Intel's SambaNova AI Alliance Just Rewire the (INTC) Investment Narrative?

    Simply Wall St·02/25/2026 07:29:29
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    • In recent days, Intel Capital joined a more than US$350 million Series E funding round for AI chip maker SambaNova Systems, while Intel and SambaNova signed a multi‑year collaboration to pair SambaNova’s new SN50 inference chip with Intel’s Xeon processors and GPUs for high-performance, lower-cost AI inference solutions.
    • This partnership underlines Intel’s effort to strengthen its AI ecosystem and compete more directly with Nvidia and AMD by combining external innovation with its own data-center hardware roadmap.
    • We’ll now examine how Intel’s multi-year AI collaboration with SambaNova could reshape the company’s existing investment narrative and risk profile.

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    Intel Investment Narrative Recap

    To own Intel today, you have to believe its heavy spending on manufacturing and AI will eventually translate into sustainable profits and a stronger competitive position, despite current losses and margin pressure. The SambaNova deal is incremental to that bigger bet: it may support Intel’s AI narrative and near term data center positioning, but it does not materially change the key near term catalyst, which is evidence that its turnaround spending is starting to improve earnings, or the biggest risk, that AI execution remains too slow.

    Among recent developments, Nvidia’s roughly US$7.9 billion stake in Intel stands out alongside the SambaNova partnership. Before this news, more bullish analysts were already assuming mid single digit annual revenue growth and a return to profitability over the next few years; Nvidia’s investment highlighted outside confidence in that turnaround, while the new SambaNova collaboration gives Intel another proof point that it is trying to stay relevant in AI data center workloads.

    Yet beneath the AI headlines, investors should be aware that Intel’s heavy foundry and R&D spending could keep margins under pressure and cash flows tight...

    Read the full narrative on Intel (it's free!)

    Intel's narrative projects $58.1 billion revenue and $5.2 billion earnings by 2028. This requires 3.1% yearly revenue growth and a $25.7 billion earnings increase from $-20.5 billion today.

    Uncover how Intel's forecasts yield a $47.12 fair value, in line with its current price.

    Exploring Other Perspectives

    INTC 1-Year Stock Price Chart
    INTC 1-Year Stock Price Chart

    Some of the most optimistic analysts already expected Intel’s revenue to reach about US$62.1 billion and earnings US$8.7 billion by 2028, so this SambaNova news could either reinforce or challenge that AI centric optimism, especially if you are also weighing the risk that high ongoing factory and R&D investment keeps profits under pressure longer than expected.

    Explore 26 other fair value estimates on Intel - why the stock might be worth 38% less than the current price!

    The Verdict Is Yours

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.