Intel will have one of the greatest turnaround stories: CEO

Intel (INTC) is ramping up its AI chipmaking with its latest product, the Gaudi3. AI and AI chips have been the center of many stories in the news as businesses around the world implement AI into their products and services. Intel CEO Pat Gelsinger joins Yahoo Finance to discuss the latest Intel products and why he believes that the semiconductor market, fueled by AI innovations, could potentially reach a trillion dollars, or more, by the end of the decade.

When asked about the recent record high market, Gelsinger responds: "AI is a driving workload and that workload, we said the semiconductor market $600 billion or so today, a trillion plus by the end of the decade. We see AI as one of those things driving a larger market...So, with that, we see a lot of market value creation yet in front of us."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

BRIAN SOZZI: Pat, I was just on the Yahoo Finance platform. Your stock's near a 52-week high, up 70% year-to-date. We have markets at records here. I'm not going to sit here and ask you to predict DOW 40,000. I know that's not your gig. But what do you think about these markets rallying? And from your standpoint, is your company doing so well that-- you know, your industry for that matter to justify where stocks are right now?

PAT GELSINGER: Well, I do think, as we talked about, AI is a driving workload. And that workload, we said, the semiconductor market, $600 billion or so today, a trillion-plus by the end of the decade. And we see AI as one of those things driving a larger market.

Further, as leading edge technologies, these are the things that we uniquely do. Only a couple of companies in the world can do this. And only one in the Western world. And that's Intel. So with that, we see a lot of market value creation yet in front of us. We're still well undervalued compared to many peers, even as we've made good progress this year. So I see a lot of opportunities for us to create value for our customers, to create value for our shareholders. And with that, we're pretty thrilled by today's announcement, because it really just is the beginning point a lot of great things that we're doing and what I believe will be one of the greatest turnaround stories in business history and technology industry history-- the rebuilding of the iconic Intel.

BRIAN SOZZI: Last week, Pat, I had some time to catch up with one of your competitors, Dr. Lisa Su over at AMD. They released their new chip. You're out here with new chips today. Should investors be comparing your two companies?

PAT GELSINGER: Well, in some ways, of course. We're traditionally in this market together. But in other ways, very different. And our IDM 2.0 strategy is a crucial piece of why different. We manufacture chips at scale. We manufacture our chips. But increasingly, as you know, SOzz, we're becoming a manufacturer for everybody's chips as well.

And then you have the fabulous model. And that's companies like Qualcomm, Nvidia, AMD. And I have many products that I build as well. So essentially, I'm building two companies inside of one-- a major foundry manufacturer at scale and a fabulous company. So in some ways, I compete but in other ways, hey, I want to manufacture all of Nvidia's chips, all of AMD's chips, as well as all of Intel's chips going forward.

And we are rebuilding the world's supply chains for the most important resource of the future. Remember, everything is going digital. Everything digital runs on semiconductors. We allow this industry to move from Western shores. We want to rebuild it back. The world needs balanced, resilient supply chains. That's what we're off to do. That's why we help drive the US CHIPS Act. That's why we're building these major manufacturing footprints. And that's why the total AI markets available to us, both our products and for our manufacturing.

BRIAN SOZZI: Well, good luck at the rest of the event. It's been fun to follow that turnaround story at Intel. Happy holidays to you and yours. Intel CEO Pat Gelsinger, we'll talk to you soon.

PAT GELSINGER: Hey, thank you so much, Sozzi. Always a pleasure. Appreciate it.

JOSH LIPTON: Brian, thanks so much. That was great. Appreciate it.