Investors weren't thrilled with chip-giant 's (NASDAQ: INTC) fourth-quarter report. While the company beat expectations across the board, its outlook for the first quarter was disappointing. Intel CEO Pat Gelsinger called the various headwinds facing the company in the first quarter temporary, but the market punished the stock, regardless.

While Intel's near-term fortunes are tied to the PC and server CPU markets, the company is on track to eventually generate billions of dollars annually from its artificial intelligence (AI) accelerator chips. As the year goes on, Intel expects revenue from this emerging business to accelerate.

Thanks to its 2019 acquisition of Habana Labs, Intel is already a player in the booming market for AI accelerators. The company's Gaudi line of chips, purpose-built for AI training and inference workloads, is a cost-effective alternative to high-powered GPUs from market leader Nvidia.

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Source Fool.com