Intel 'Still Undervalued' as AI Shifts to Agentic Era: Dan Niles

Veteran investor Dan Niles, founder of Niles Investment Management, sees Intel Corp. (NASDAQ:INTC) as a major opportunity in the next phase of the AI revolution, looking beyond the current GPU boom led by Nvidia Corp. (NASDAQ:NVDA).

Recommendation Change

Niles did not issue a formal prior rating, but he believes the market is not yet pricing in Intel's potential in the shift toward "Agentic AI."

Analyst's Rationale

Niles argues that the first phase of AI, focused on training large models with Nvidia's GPUs, has peaked. With the rise of Agentic AI—systems capable of autonomous decision-making—demand will shift toward more diverse, power-efficient hardware. Intel excels in this area with its broad CPU portfolio and integrated solutions.

Context

While Nvidia has soared on the AI training boom, Intel's stock has lagged. Niles believes Agentic AI infrastructure requires edge computing and heterogeneous processing, traditional strengths for Intel. No other analysts have publicly echoed this view yet.

Bottom Line

Niles' view is a long-term investment thesis, not a consensus market call. Investors should assess Intel's strategic transformation risks and its ability to compete in the fast-evolving AI hardware market.