The rise of artificial intelligence (AI) produced massive demand for semiconductor chips capable of supporting the sophisticated needs of AI systems. This, in turn, increased the stock price of many semiconductor chip providers, notably Nvidia.
Veteran chipmaker (NASDAQ: INTC) was among those with a surging stock price over the past year, reaching a 52-week high of $51.28 in December. Since then, however, Intel shares have dropped.
This could signal a buy opportunity. But don't let the current excitement around AI cloud your judgment. Not all semiconductor companies can achieve the success Nvidia has experienced. So, before scooping up Intel shares, it's best to understand whether the company makes sense as a long-term investment.
Source Fool.com