Intel Stock Up In Pre-Market (NASDAQ: INTC) | Continues To Set Lofty Targets

Intel stock (NASDAQ: INTC) experienced an uptick in trading on Friday (+ 2.97%) and continue the bullish momentum through pre-market this morning (+0.45%). The stock had been buoyed in part by optimistic remarks from the company's Chief Technology Officer, and a breakout from the trading range of $31 that had been set over the prevailing 2 months.

With Intel setting its sights on a substantial goal for its software segment by targeting a cumulative revenue of $1 billion by the end of 2027, there is a long road of growth ahead if this number is to be achieved.

“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.”

Greg Lavender, Intel CTO

Intel's ambition reflects a broader shift in the tech industry towards software and services, as hardware providers seek to add value through complementary software offerings. Lavender underscored the potential of this expansion by highlighting Intel's focus on Artificial Intelligence (AI), performance, and security services.

To spur growth in this area, Intel has acquired three software companies, looking to tap into their capabilities and innovation to bolster its software services.

A significant driver of this growth is the anticipation surrounding Intel's next-generation AI chip, Gaudi 3. Lavender emphasised the potential market demand for this advanced semiconductor, suggesting that it could catalyse a new wave of revenue growth.

Backing this push into AI and software is Intel's support for open-source projects. Through these initiatives, Intel intends to foster the development of software and tools tailored for AI chips. This strategy aligns well with the tech industry's prevalent ecosystem approach, where building a foundation of developer-friendly tools can accelerate adoption and innovation.

Intel's march towards a software-centric future could mark a key transformation for the company, as it aligns itself with the evolving demands of the digital economy. The company's concerted efforts in AI, combined with its foundational work in open-source projects, could significantly reshape its revenue composition and market position in the coming years.