These Tech Heavyweights Are Going All In On AI

Even the most casual investor has no doubt heard about Nvidia’s banner year. Fueled by the artificial intelligence boom, that stock recently completed a 10-for-1 split. But what’s getting less attention is the crop of long-time tech powerhouses that are now going all in on AI. If you’re looking for a bargain on an AI-powered tech stock, don’t sleep on Intel and Oracle.

Intel (NASDAQ: INTC)

Long-time CPU stalwart Intel was slow to enter the AI race. But the company has more than made up for its inauspicious start in recent months. Its Intel Core Ultra-mobile processors have plenty of power for the new generation of AI computers, while its Gaudi AI Accelerator should have everyone sitting up and taking notice. This chip produces 50% better inference and 40% better power efficiency than Nvidia’s red hot H100, all at a lower price point. In addition, Intel is on track to become the second-biggest chip foundry in the world by 2030.

Intel is currently a bargain buy, trading at just 28 times its forward earnings estimates. But if its pivot to AI works out as expected, investors shouldn’t wait too long.

Oracle (NYSE: ORCL)

Oracle offers a wide range of cloud services to meet a variety of different needs, all at a price point lower than its competitors. Thanks to its new Gen2 AI infrastructure, the company is signing new contracts at a rate that outstrips its current supply. But Oracle is rapidly expanding its data centers, meaning that it should be able to scale to meet demand. Its remaining performance obligations are driving expected future revenue growth well into the double digits.

Oracle is still a bargain, trading at 23 times forward earnings estimates. But the company appears to be right on the precipice of explosive growth, meaning that now is the right time to climb on board.

Neither Lisa Fritscher nor Stocks.News have positions in Oracle. Stocks.News has positions in Intel.