Intel Targets $1 Billion in Cumulative Software Sales by 2027

Intel on track for cumulative software sales of $1 billion by end 2027: CTO - ET Telecom

By Fanny Potkin SINGAPORE: Intel's push into software is going well and the company could have cumulative software revenue of $1 billion by the end of 2027, Chief Technology Officer Greg Lavender told Reuters. Intel made north of $100 million in software revenue in 2021, the year Lavender was brought in from cloud computing company VMware by CEO Pat Gelsinger to steer the chipmaker's software strategy. Since then, Intel has bought three software companies. "I have a goal of getting to $1 billion of software and developer cloud subscription revenue," he said. "I think I'm on track to hit this goal by the end of 2027 ... maybe sooner." Intel, which generated $54 billion in revenue in 2023, offers a range of software services and tools for hire, ranging from cloud computing to artificial intelligence. Lavender said his strategy is to focus on providing services in AI, performance and security and the company has been investing in all three areas. Separately, Lavender said Intel is seeing "lots of demand" for its upcoming Gaudi 3 chip, which he believes can help the company take second place in the AI chip market. Intel and Advanced Micro Devices' AI processors have so far not made much headway into denting the dominance of market leader Nvidia, which controlled roughly 83% of the data center chip market in 2023. Lavender said Intel is supporting open-source initiatives seeking to build software and tools that will be able to power a wide range of AI chips and expects further breakthroughs in coming months. Part of Nvidia's success is linked to its software CUDA, which keeps developers tied to Nvidia chips. France's antitrust regulator is set to charge Nvidia for suspected anti-competitive behaviour, sources have said. The watchdog has voiced concerns about the generative AI sector's dependence on CUDA. Intel is part of the UXL Foundation, a consortium of tech companies developing an open-source project that aims to make computer code run on any machine, regardless of what chip and hardware powers it. Other members include Qualcomm, Samsung Electronics and Arm Holdings. Lavender added that Intel is contributing to Triton, an OpenAI-led initiative to build an open-source programming language designed to enhance code efficiency across AI chips. AMD and Meta are also supporting the project. Triton is already running on Intel's existing graphics processing units and will work on the company's next generation of AI chips. "Triton is going to level the playing field," he said.

Chipmaker Intel on path to see $1B in cumulative software revenue by end of 2027

Intel's (NASDAQ:INTC) Chief Technology Officer Greg Lavender noted that the company could achieve cumulative software revenue of $1B by the end of 2027, Reuters reported. The Santa Clara, Calif.-based chipmaker generated over $100M in software revenue in 2021. It was the same year Lavender was hired from cloud computing company VMware by Intel to drive the company's software strategy. Since that period, Intel has acquired three software companies, the report added. "I have a goal of getting to $1 billion of software and developer cloud subscription revenue," said Lavender, adding that he thinks he was on track to hit the goal by the end of 2027 or maybe sooner. Intel generated a total of revenue of $12.7B in the first quarter of 2024, up 8.5% year-over-year. However, the company had provided a weaker-than-expected guidance for the second quarter while reporting its first quarter results in April. Lavender added that his strategy is to focus on providing services in AI, performance and security and Intel has been investing in all three sectors. In addition, Lavender noted that the company is seeing "lots of demand" for its upcoming chip Gaudi 3, which he thinks can help the company take second spot in the AI chip market, the report noted. Intel and Advanced Micro Devices' (AMD) AI processors so far have not made many inroads to challenge the market dominance of Nvidia (NVDA), which controlled about 83% of the data center chip market last year. The executive noted that Intel is supporting open-source efforts aimed at developing software and tools which will be able to power a range of AI chips. The company expects more breakthroughs in the coming months. Nvidia's success, partly, is related to its software CUDA, which keeps developers tied to Nvidia chips. France's antitrust regulator is set to charge Nvidia for alleged anti-competitive behavior, the report added citing sources. The regulator is concerned about the generative AI industry's dependence on CUDA. Intel is part of UXL Foundation, a group of tech firms -- which include Qualcomm (QCOM) Samsung Electronics (OTCPK:SSNLF) and Arm Holdings (ARM) -- developing an open-source project which intends to build a computer code run on any machine, regardless of what chip and hardware is powering it. Lavender said that that Intel is contributing to an OpenAI-led project called Triton to build an open-source programming language aimed at boosting code efficiency across AI chips. AMD and Meta Platforms (META) are also helping in the project. Triton is already powered by Intel's current graphics processing units and will also work on the company's next generation of AI chips, the report noted. Lavender added that Triton is going to level the playing field.

Intel's cumulative software sales could hit $1 billion by 2027 end, CTO says By Investing.com

Intel's (NASDAQ:INTC) software initiative is progressing well, with the company potentially reaching a cumulative software revenue of $1 billion by the end of 2027, the company's CTO Greg Lavender told Reuters. In 2021, the year Lavender joined Intel from VMware under CEO Pat Gelsinger, Intel generated over $100 million in software revenue. Since then, the chipmaker has acquired three software companies. "I have a goal of getting to $1 billion of software and developer cloud subscription revenue," Lavender reportedly said in the interview. "I think I'm on track to hit this goal by the end of 2027 ... maybe sooner." Lavender's strategy focuses on services in AI, performance, and security, with Intel investing heavily in these areas. Moreover, he noted strong demand for Intel's upcoming Gaudi 3 chip, which he believes will help the company secure second place in the AI chip market. Intel is also backing open-source initiatives aimed at developing software and tools for a variety of AI chips, with anticipated breakthroughs in the coming months. Among those is Triton, an OpenAI-led project to create an open-source programming language that improves code efficiency across AI chips. AMD (NASDAQ:AMD) and Meta (NASDAQ:META) are also involved in this project. Triton is already operational on Intel's current graphics processing units and will be compatible with the next generation of AI chips. "Triton is going to level the playing field," Lavender said. Intel and AMD have struggled to significantly challenge the dominance of market leader Nvidia (NASDAQ:NVDA) (NVDA, which controlled approximately 83% of the data center chip market in 2023. Nvidia's success is partly attributed to its software, CUDA, which keeps developers loyal to Nvidia chips. Recent reports have suggested that the AI darling is facing an antitrust lawsuit from France's regulators due to suspected anti-competitive behavior. The watchdog has expressed concerns about the generative AI sector's reliance on CUDA.

Intel on track for cumulative software sales of $1 billion by end 2027, exec says

"I have a goal of getting to $1 billion of software and developer cloud subscription revenue," he said. "I think I'm on track to hit this goal by the end of 2027 ... maybe sooner." Intel, which generated $54 billion in revenue in 2023, offers a range of software services and tools for hire, ranging from cloud computing to artificial intelligence. Lavender said his strategy is to focus on providing services in AI, performance and security and the company has been investing in all three areas. Separately, Lavender said Intel is seeing "lots of demand" for its upcoming Gaudi 3 chip, which he believes can help the company take second place in the AI chip market. Intel and Advanced Micro Devices' AI processors have so far not made much headway into denting the dominance of market leader Nvidia, which controlled roughly 83% of the data center chip market in 2023. Lavender said Intel is supporting open-source initiatives seeking to build software and tools that will be able to power a wide range of AI chips and expects further breakthroughs in coming months. Part of Nvidia's success is linked to its software CUDA, which keeps developers tied to Nvidia chips. France's antitrust regulator is set to charge Nvidia for suspected anti-competitive behaviour, sources have said. The watchdog has voiced concerns about the generative AI sector's dependence on CUDA. Intel is part of the UXL Foundation, a consortium of tech companies developing an open-source project that aims to make computer code run on any machine, regardless of what chip and hardware powers it. Other members include Qualcomm, Samsung Electronics and Arm Holdings. Lavender added that Intel is contributing to Triton, an OpenAI-led initiative to build an open-source programming language designed to enhance code efficiency across AI chips. AMD and Meta are also supporting the project. Triton is already running on Intel's existing graphics processing units and will work on the company's next generation of AI chips. "Triton is going to level the playing field," he said. (Reporting by Fanny Potkin in Singapore; Additional reporting by Max Cherney in San Francisco; Editing by Anne Marie Roantree and Edwina Gibbs)

Chip Maker Intel Aims For $1B In Software Revenue By 2027 - Intel (NASDAQ:INTC)

Intel targets $1 billion software revenue by 2027.Focuses on AI, performance, and security investments. Intel Corp's INTC latest foray into the software realm is proving successful. According to Chief Technology Officer Greg Lavender, the company aims to achieve cumulative software revenue of $1 billion by the end of 2027. Intel generated over $100 million in software revenue in 2021, the year CEO Pat Gelsinger recruited Lavender from VMware to lead the chipmaker's software initiatives. Since then, Intel has acquired three software firms. Lavender expressed his goal of reaching $1 billion in software and developer cloud subscription revenue, potentially achieving this target before the end of 2027, Reuters reported. Intel's overall revenue was $54 billion in 2023. It offers a diverse range of software services, including cloud computing and artificial intelligence. The company's strategic focus encompasses AI, performance, and security, with notable investments in these domains. Lavender highlighted a growing demand for Intel's upcoming Gaudi 3 chip, which could help the company secure a significant position in the AI chip market. Currently, Intel and Advanced Micro Devices Inc AMD have made limited progress in challenging Nvidia Corp NVDA, which holds an 83% share of the data center chip market in 2023. Also Read: Intel Invests In Israeli AI Construction Startup Buildots - What's On The Cards? Intel is supporting open-source projects aimed at developing software for various AI chips, and it is anticipating further advancements soon. Nvidia's dominance is partly due to its CUDA software, which binds developers to its chips. However, France's antitrust regulator is investigating Nvidia for possible anti-competitive behavior, particularly concerning the reliance on CUDA within the generative AI sector. Intel is a member of the UXL Foundation, a consortium of tech companies, including Qualcomm Inc QCOM and Samsung Electronics Co Ltd SSNLF, working on an open-source project to enable software compatibility across different hardware. Intel also contributes to Triton, an initiative led by OpenAI to create an open-source programming language aimed at optimizing AI chip code efficiency. AMD and Meta Platforms Inc META are among the project's supporters. Triton is already operational on Intel's current GPUs and will be compatible with the next generation of AI chips. Lavender believes Triton will "level the playing field" in the AI chip market. Intel stock has lost 1% in the last 12 months. Investors can gain access to the stock via First Trust Nasdaq Semiconductor ETF FTXL and Strive U.S. Semiconductor ETF SHOC. Price Action: INTC shares are trading lower by 0.21% at $33.43 in the premarket session at the last check on Friday. Read Next: Biden Administration Launches Program To Bolster US Chip Workforce Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs

Why Intel Corporation Shares Are Trading Higher Friday - Intel (NASDAQ:INTC)

Intel's chief technology officer reportedly said it is targeting a cumulative software revenue of $1 billion by the end of 2027. Intel Corporation INTC stock is trading higher Friday after the chief technology officer reportedly stated it is targeting a cumulative software revenue of $1 billion by the end of 2027. What To Know: The chief technology officer Greg Lavender told Reuters, "I have a goal of getting to $1 billion of software and developer cloud subscription revenue," he said. "I think I'm on track to hit this goal by the end of 2027 ... maybe sooner." Lavender stated that his approach is to concentrate on offering services in AI, performance and security. These are all areas that Intel has been investing in already. In addition, the chief technology officer mentioned potential demand for Intel's pending AI chip Gaudi 3. The company is also backing open-source projects aimed at developing software and tools capable of powering various AI chips, with further advancements anticipated in the coming months. In 2021, Intel earned $100 million in software revenue. The company has since acquired three software companies. How To Buy Intel Corporation Shares Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in Intel INTC's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Related Link: Rocket Lab Blasts Off With Golden Cross: Time To Buckle Up? INTC Price Action: At the time of publication, Intel stock is trading 3.52% higher at $34.68 per data from Benzinga Pro. Image: Photo via Shutterstock Market News and Data brought to you by Benzinga APIs

Why Intel Stock Popped on Friday

Intel (NASDAQ: INTC) stock gained 2.5% through 10 a.m. ET Friday on positive comments about the computer hardware titan's progress building a computer software business. As Reuters reports, Intel chief technology officer Greg Lavender painted a positive picture of Intel's software prospects, saying the company is on course for $1 billion in software sales through 2027. Reading between the lines at Intel Reuters described the figure as "cumulative," but that may be incorrect. What Lavender actually said was: "I have a goal of getting to $1 billion of software and developer cloud subscription revenue," with a focus on artificial intelligence (AI), performance, and cybersecurity software. To me, that sounds like $1 billion in 2027. And if Intel does in fact build a $1 billion-a-year software business by 2027, then it would mean 10x growth since 2021, when Intel's total software revenue was only $100 million. That would be very impressive growth indeed. Admittedly, even $1 billion a year is tiny relative to Intel's core semiconductors business, which produced revenue of well over $50 billion last year. Still, as regards the AI software in particular, Lavender noted that Intel is promoting open source software that can be used to power "a wide range of AI chips," according to Reuters. Success in this realm could help Intel to whittle away a bit at Nvidia's lead in selling AI chips, thus indirectly boosting Intel's main source of profit. Is Intel stock a buy? All this being said, I'm still not convinced that Intel stock is a buy at its current valuation. While technically profitable with $4.1 billion in reported net income over the past year, Intel is still burning cash at a furious pace -- $12.3 billion in negative free cash flow recorded over the last 12 months. And that's up from $9.6 billion burned in 2022! With cash burn expected to continue through at least 2027, Intel stock is not yet worth buying. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $780,654!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Intel Stock Popped on Friday | The Motley Fool

Intel has a software business now -- but its stock still costs too much. Intel (INTC 3.92%) stock gained 2.5% through 10 a.m. ET Friday on positive comments about the computer hardware titan's progress building a computer software business. As Reuters reports, Intel chief technology officer Greg Lavender painted a positive picture of Intel's software prospects, saying the company is on course for $1 billion in software sales through 2027. Reuters described the figure as "cumulative," but that may be incorrect. What Lavender actually said was: "I have a goal of getting to $1 billion of software and developer cloud subscription revenue," with a focus on artificial intelligence (AI), performance, and cybersecurity software. To me, that sounds like $1 billion in 2027. And if Intel does in fact build a $1 billion-a-year software business by 2027, then it would mean 10x growth since 2021, when Intel's total software revenue was only $100 million. That would be very impressive growth indeed. Admittedly, even $1 billion a year is tiny relative to Intel's core semiconductors business, which produced revenue of well over $50 billion last year. Still, as regards the AI software in particular, Lavender noted that Intel is promoting open source software that can be used to power "a wide range of AI chips," according to Reuters. Success in this realm could help Intel to whittle away a bit at Nvidia's lead in selling AI chips, thus indirectly boosting Intel's main source of profit. All this being said, I'm still not convinced that Intel stock is a buy at its current valuation. While technically profitable with $4.1 billion in reported net income over the past year, Intel is still burning cash at a furious pace -- $12.3 billion in negative free cash flow recorded over the last 12 months. And that's up from $9.6 billion burned in 2022! With cash burn expected to continue through at least 2027, Intel stock is not yet worth buying.