Yahoo Finance·2025-11-05 01:05Core Insights - The demand for CPUs in AI servers is increasing, driven by the rise of inference workloads surpassing AI training workloads, leading to a short-term supply-demand mismatch [1] - Intel's financial position is strengthening with $20 billion in cash from various deals, including government funding and stake sales, and expects an additional $5 billion from Nvidia [2] - Intel reported better-than-expected earnings in Q3 2025, with revenues of $13.7 billion, a 3% sequential increase, and non-GAAP earnings per share of $0.23 [3] Intel's Position in AI and Semiconductor Market - Intel is developing advanced chips for AI models and is experiencing strong momentum in its foundry business, with solid progress on its 18A process node [5][7] - The company has returned to profitability after six quarters of losses, driven by strong CPU demand in AI servers and improving foundry prospects [8] - Intel's forward price-to-earnings ratio remains elevated, but its sales multiple of 3.57 times is modest for a leading semiconductor player [8] Alphabet's Growth and AI Integration - Alphabet's revenues rose 16% year-over-year to $102.3 billion in Q3 2025, with operating income up 22% to $31.2 billion, driven by growth in Search, YouTube, and Google Cloud [10] - Google Cloud's revenues increased 34% year-over-year to $15.2 billion, with a contracted backlog of $155 billion, indicating strong revenue visibility [12] - AI technologies are enhancing Alphabet's Search capabilities and monetization strategies, with AI Overviews reaching over 2 billion users [11] Market Outlook - The global AI market is projected to grow at a CAGR of 29.2%, from $294.1 billion in 2025 to $1.77 trillion in 2032, contingent on computing power and cloud infrastructure availability [6] - Both Intel and Alphabet are positioned to benefit from the massive AI infrastructure buildout, making them attractive long-term investment options [9][14]