What Makes Intel (INTC) and Karma’s Partnership Key to the Future of Automotive AI? - InvestingChannel

What Makes Intel (INTC) and Karma’s Partnership Key to the Future of Automotive AI?

We recently compiled a list of the 13 AI News Investors Should Not Miss. In this article, we are going to take a look at where Intel Corporation (NASDAQ:INTC) stands against the other AI news investors should not miss.

As we look toward 2025, the AI investment landscape is evolving from a focus on general-purpose computing to custom-built solutions tailored to specific needs. This shift opens up opportunities for suppliers of specialized technology and software companies to incorporate AI into their offerings. Meanwhile, higher interest rates may push investors toward established players with strong growth potential in the AI space.

READ ALSO: 12 AI News and Ratings Investors Are Watching Right Now and Jim Cramer’s Latest Lightning Round: 8 Stocks in Focus.

Custom Silicon and AI Drive Market Shifts in 2025

At CNBC’s ‘Closing Bell,’ Doug Clinton of Intelligent Alpha and Deepwater Asset Management discussed the shifting dynamics of AI investments heading into 2025. He explained that while Nvidia has been a key beneficiary of AI-driven spending over the past two years, with companies investing heavily in general-purpose AI compute, the focus is now transitioning to custom silicon. Companies like Google, Microsoft, Meta, and Amazon have developed their own custom chips designed to handle their specific AI needs. Clinton believes that as these companies begin to deploy their custom chips more aggressively, suppliers like Broadcom, which works with most of these tech giants, and Marvell, another stock in Intelligent Alpha’s portfolio, could see growth.

He compared the current AI trend to the dot-com era, where Cisco was a dominant player. He stressed that the AI market is not solely about one company, and as the sector evolves, more companies will emerge as key players, broadening the scope of AI investments.

Regarding the impact of interest rates, Clinton noted that higher rates might push investors back to mega-cap stocks, but also highlighted that companies with strong AI growth potential, like Snowflake, could still thrive. The company has been expanding its AI offerings and could attract attention as more customers deploy its services for AI applications.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Is Intel Corporation (INTC) the Best Edge Computing Stock to Invest in According to Analysts? A technician soldering components for a semiconductor board.

Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 68

Intel Corporation (NASDAQ:INTC) designs and manufactures products for AI workloads, including processors, accelerators, and optimization solutions.

Karma Automotive and Intel Automotive are advancing their collaboration on Software Defined Vehicle Architecture (SDVA), which will power Karma’s upcoming vehicles, starting with the 2026 Karma Kaveya super-coupe. At CES 2025, they will showcase how SDVA improves powertrain performance and range efficiency. Karma President Marques McCammon will join Intel’s Jack Weast to highlight how SDVA, combining AI-driven computing, power management, and open ecosystem software, supports a sustainable automotive future. Karma will also demonstrate an Intel co-branded inverter to improve powertrain efficiency, showcasing energy savings and increased range through real-time tests.

Overall, INTC ranks 4th on our list of AI news investors should not miss. While we acknowledge the potential of INTC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article is originally published at Insider Monkey.

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