Intel seen as undervalued with huge AI-driven growth potential beyond Nvidia's GPU boom

Dan Niles of Niles Investment Management highlights Intel's undervaluation despite its recent stock surge, driven by the rise of Agentic AI which demands more CPU power. Unlike Nvidia's GPU-focused AI boom, Intel's CPUs are crucial for orchestrating complex AI tasks, potentially balancing hardware demand closer to a one-to-one CPU-GPU ratio. Niles expects Intel to secure major foundry customers, including Apple and Tesla, boosting its long-term value amid possible short-term sector corrections. Intel shares have surged over 220% in 2026, reflecting strong investor interest in its AI hardware role.