Intel is embarking on a significant strategic shift, aiming to reclaim its leadership in the semiconductor industry by moving beyond its traditional PC market. The company is placing a major bet on its new Core Ultra Series 3 chip to power a new generation of AI-enabled devices, including a concerted push into the emerging field of robotics.
Key Takeaways
- Intel's new strategy is centered around the Core Ultra Series 3 chip, designed for both PC performance and on-device AI processing.
- The company is expanding its focus from personal computers to a wider range of devices, with a particular emphasis on robotics.
- This pivot comes as Intel faces heightened competition from rivals like Nvidia, AMD, and Qualcomm in the lucrative AI chip market.
- The strategy is supported by new leadership under CEO Lip-Bu Tan and a significant investment from the U.S. government.
The Core of the Comeback Plan
For decades, Intel has been the dominant force in chips for laptops and desktops. However, the landscape has changed dramatically with the rise of mobile computing and artificial intelligence. Under the guidance of CEO Lip-Bu Tan, who took the position in March of last year, the company is executing a turnaround plan designed to address these new market realities.
At the heart of this plan is the recently announced Core Ultra Series 3 chip. This new processor is engineered to serve two primary functions. First, it aims to enhance the traditional PC experience by improving core qualities that consumers value, such as longer battery life. Second, and more critically, it is built to boost performance for the growing number of AI applications used directly on devices.
A Crowded Marketplace
While Intel remains the largest PC chipmaker, its market share has been challenged. The International Data Corporation reported Intel held over 71% of the market in 2024. However, competitors are gaining ground. Apple famously shifted to its own processors for MacBooks in 2020, and AMD has steadily increased its presence. Qualcomm is also making a concerted push into the laptop space with its own AI-optimized chips.
Intel says the new chip will be featured in more than 200 new PC designs from major manufacturers this year. The goal is to provide a versatile platform for a wide range of users, from gamers to business professionals, who are increasingly relying on AI tools for tasks like video conferencing and coding.
Expanding the Battlefield Beyond PCs
Intel's leadership recognizes that winning in the PC market alone is no longer enough. The next major growth area is seen in the vast ecosystem of smart devices that exist between personal computers and massive cloud data centers. This is where the company plans to challenge its rivals more directly.
Jim Johnson, head of Intel's client computing group, highlighted this expansive vision at the recent CES tech conference in Las Vegas.
“The devices between PCs and the cloud are almost infinite,” Johnson stated, emphasizing the company's ambition to embed its technology in a broader array of products.
A key target in this expansion is the robotics industry. Intel is positioning the Core Ultra 3 as an ideal processor for robots, offering powerful on-device processing that reduces the need to connect to cloud servers. This can lead to faster response times and lower operational costs.
A Strategic Win in Robotics
The company has already secured a notable partner in this new venture. Oversonic Robotics, a firm that develops humanoid robots for sectors like healthcare, has announced plans to switch from Nvidia hardware to Intel's Core Ultra 3 chip to power its robots.
Performance and Cost Advantages
According to Intel spokesperson Nina Mehlhaf, Oversonic Robotics found that using Intel's chips resulted in lower overall costs and faster performance. This is because the on-chip processing avoids the latency and expense associated with sending data to the cloud for analysis. However, it's important to note that Oversonic still uses Nvidia's technology for the initial training of its AI models.
This move signifies a direct challenge to Nvidia, whose chips have become the industry standard for training the large AI models that power services like ChatGPT and are central to data center operations. While Nvidia dominates the high-end AI training market, Intel sees an opportunity in AI inference—the process of running trained models on local devices.
Navigating Intense Competition and Past Missteps
Intel's path forward is not without significant obstacles. The company is fighting a multi-front war against agile and powerful competitors. Nvidia's dominance in AI data centers has propelled it to a valuation that briefly surpassed $5 trillion, and it is also making major inroads in robotics.
At the same time, AMD announced new chips at CES capable of processing larger AI models directly on laptops, enhancing privacy and reducing lag. Qualcomm, a leader in mobile chips, is also aggressively entering the laptop market with promises of multi-day battery life and superior AI performance.
To succeed, Intel must avoid the strategic errors that allowed rivals to gain ground over the past decade. This involves not only anticipating consumer needs but also executing on a manufacturing timeline that keeps pace with, or surpasses, the competition. Johnson noted that CEO Lip-Bu Tan has fostered a culture of transparency and accountability to address these challenges head-on.
A Renewed Sense of Optimism
Despite the competitive pressures, there is a renewed sense of confidence within the company. This optimism appears to be shared by investors and the U.S. government. Intel's stock saw significant gains in 2025, rising roughly 84% and is up approximately 98% year-over-year.
A major factor in this confidence is the U.S. government's decision last year to take a roughly 10% stake in the company. This move is part of a broader federal initiative to bolster domestic semiconductor manufacturing. Former President Donald Trump recently praised the company on Truth Social for its commitment to manufacturing in the United States, highlighting the powerful political alliance supporting Intel's comeback.
While analysts like Bill Ray of Gartner caution that the market for humanoid robots is still in its infancy with significant technical hurdles to overcome, Intel's leadership remains bullish on its diversified strategy.
“I see Intel getting back in shape like it used to be,” Johnson concluded, reflecting the company's determination to innovate its way back to the top of the semiconductor world.