This article first appeared on GuruFocus .
Intel ( NASDAQ:INTC ) stock jumped 3% on Friday after Global Equities Research analyst Trip Chowdhry argued that Dell's latest results point to a sharp increase in demand for Intel CPUs used in AI-related infrastructure.
Chowdhry sees a potential $200 share price for Intel and estimates earnings of $20 per share by 2031. His thesis centers on rising CPU requirements alongside accelerators, the large installed base of x86 systems and Intel's Clearwater Forest platform.
Dell's traditional server and networking business generated $10.5 billion of revenue in its latest quarter, up 122% from a year earlier. Company executives also cited greater computing requirements for AI and automated software workloads.
The analyst believes AI workloads involving video, images and audio could require more CPU resources than earlier text-focused applications. He also points to Intel's support for large system memory and its Advanced Matrix Extensions, which can handle several AI-focused numerical formats.
The view adds a bullish catalyst for Intel, but the $200 target depends on sustained CPU demand and future earnings growth.
