Instead of Nvidia, buy this AI stock now.

Today, Nvidia supplies the most powerful AI chips and controls the industry with 80% share. Despite its triple-digit gains over the past year, the stock is a good long-term investment. It may not be the best AI buy right now.

Nvidia's opponent, who lagged behind in the AI competition, may be poised for a large turnaround and long-term growth, making it a better buy today. Computer chipmaker Intel (NASDAQ: INTC) took two potentially game-changing initiatives. Discover this no-brainer AI stock to purchase now.  

$1 trillion market I don't expect Intel to overtake Nvidia in GPU sales. Fortunately, Intel doesn't need to do that to succeed in this AI business. The AI market is expected to exceed $1 trillion by the end of the decade, and Nvidia, AMD, and Intel are the top chip designers.

Chip demand may be large enough to drive revenue growth at all three firms due to the market's size and AI's potential impact in almost every area, from healthcare to cars. Intel leads the CPU industry, but it slipped behind in GPUs. GPUs initially powered video games and graphics applications and can multitask. GPUs still do, but AI is their main business.  

Intel made two good steps. Late last year, Intel launched a new portfolio of innovative AI devices, including the Intel Core Ultra mobile processor family, which innovates in computing, graphics, and battery life. The business says Intel Core Ultra ushers in the era of the AI personal computer, a powerful AI-capable machine. The business calls this the biggest PC change since laptops connected to WiFi 25 years ago.  

New Xeon processor The chip manufacturer also revealed the Gaudi 3 AI accelerator for deep learning and large-scale generative AI in 2024 and the newest Xeon processor family, which boosts AI performance. Intel aims to boost its accelerator market share this year because to rising demand.  

Second, Intel is taking a risky wager that could pay off handsomely. The company plans to become the world's second-largest foundry by 2030 by opening its manufacturing network. Many businesses, like Nvidia, develop semiconductors but outsource manufacturing to foundries. The world's largest manufacturer is Taiwan Semiconductor Manufacturing Co.  

With years of experience making semiconductors, Intel will now market its manufacturing services. Three more customers and five advanced-packaging contracts were won by the company last year after starting with one for its 18A process. Intel, like other chip makers, will use its foundry to make its own chips.  

US government Intel support Intel's proposal would lessen U.S. dependence on foreign manufacturers, and the government recently proposed $8.5 billion in direct funding of Intel's semiconductor-manufacturing projects in four states. Intel will invest $100 billion over five years on U.S. chipmaking capacity.

Consider Intel's value. The company trades at 27 times forward-earnings estimates, a fair price given analysts' five-year double-digit growth forecasts. Intel might see revenue growth soar if it wins on AI and manufacturing. Intel is a no-brainer buy for long-term AI growth investors.  

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