Yahoo Finance Intel (INTC) and BCG Team Up to Build Enterprise Grade AI Solution
Intel Corporation INTC recently announced a collaboration with Boston Consulting Group (BCG) — a global consulting firm — to develop enterprise-grade, reliable, customized and secure Generative AI solutions to help organizations optimize operations. Generative AI has several use cases and has tremendous capability to execute creative tasks and improve overall performance, productivity and drive enterprise value.
However, the scalability of AI applications within the organization’s ecosystem and risks associated with data privacy and security are a concern for businesses. The collaboration of INTC and BCG addresses these requirements and also enables seamless integration of AI capabilities into existing enterprise workflows.
Using Intel’s AI supercomputer, which is powered by Intel Xeon Scalable Processors and AI-optimized hardware accelerators, BCG employed a domain-specific foundation model trained on its own proprietary data. The newly-developed chatbot interface extracts and summarizes information efficiently with enhanced relevancy and work completion rates. The Generative AI has immense potential and can ensure significant long-term competitive advantage for enterprises. Intel’s initiatives to support and expedite the development of Generative AI by providing its AI hardware and software technologies are likely to boost its commercial outlook.
Intel, the world’s largest semiconductor company and primary supplier of microprocessors and chipsets, is lowering its dependence on the PC-centric business by moving into data-centric businesses — such as AI and autonomous driving. It is witnessing a healthy momentum in data center business with integrated affordable solutions. Heavy investment in research and development to drive technological innovation and concerted focus on increasing market diversification are tailwinds. Healthy traction from Mobileye’s technologies related to in-car networking, sensor-chips, cloud software, machine learning and data management are positives.
Increasing propensity to shift to low-cost computing devices is increasing the pressure on servers that are taking the load off these devices. As more information in various structures and formats are increasingly stored in the cloud, there is demand for a new breed of chips that are more efficient in terms of cost and energy but may not pack in quite as much compute power as in the past. This is the area where many expected lost opportunities for Intel because of its focus on compute power that often proved more expensive and also power guzzling. But Intel has made advancements in this area and is offering more integrated solutions that will likely be competitive on a cost per watt basis. The company’s investments in field programmable gate array (FPGA) for acceleration (dramatically increases performances at low power) and memory to reduce latency and increase speeds are helping it develop custom solutions for big players.
Shares of the company have lost 32.6% in the past year compared with the industry’s gain of 25.5%.
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Intel currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
InterDigital, Inc. IDCC, carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 579.03%.
It is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.
Workday Inc. WDAY, carrying a Zacks Rank #2, delivered an earnings surprise of 7.67%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 11.24%.
Workday is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
Meta Platforms Inc. META, sporting a Zacks Rank #1, delivered an earnings surprise of 15.46%, on average, in the trailing four quarters. Meta Platforms is the world’s largest social media platform. The company’s portfolio offering evolved from a single Facebook app to multiple apps like photo and video-sharing app Instagram and WhatsApp messaging app owing to acquisitions.
Meta is considered to have pioneered the concept of social networking, which is why it enjoys a first mover’s advantage in this market. As developed regions mature, Meta undertakes measures to drive penetration in emerging markets of South East Asia, Latin America and Africa.
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