It feels like a very long time ago now, but Intel (NASDAQ:INTC) was mocked and disrespected on Wall Street earlier this year. Today, Intel appears to be staging a comeback as the company develops artificial intelligence compatible chips for personal computers, servers and other applications. Hence, INTC stock is interesting for 2024 and earns a “B” grade.

It’s unnecessary to load up on Intel stock right now, especially since Intel still faces fierce competition from highly favored AI chip makers. Only time will tell whether Intel’s turnaround attempt has legs. Still, if you’re looking to diversify your technology stock holdings, put Intel on your watch list.

INTC Stock Alert: CEO Nixes Foundry Spin-Off Rumors

If you’re thinking about investing in Intel, one thing you need to know is that the company designs processors but also manufactures them in a foundry. Not all chip makers have dedicated foundry businesses.

Intel’s processor manufacturing division is known as Intel Foundry Services. It’s not separate from Intel, though some social media commentators might try to start rumors that Intel’s seeking to spin off IFS into a separate company.

Just recently, Intel CEO Pat Gelsinger put the kibosh on any such spin-off rumors. According to Reuters, Gelsinger specifically stated that Intel doesn’t plan to spin off IFS.

“The idea of the internal foundry model, we think, is the right path for us in the current environment,” Gelsinger was quoted as saying. Now, investors must weigh the benefits and drawbacks of Intel holding on to IFS.

Intel could evolve into a leaner, more focused company by spinning off IFS. On the other hand, Intel has an opportunity to generate substantial revenue through its foundry business.

Intel Doubles Down on AI Processors

Intel certainly wasn’t the king of AI chip makers in 2023. Yet, there’s room for Intel to improve and grow in this area, especially now that the company has unveiled new chips for servers, PCs and more.

First, Intel revealed a new lineup of Core Ultra processors for laptops at the company’s AI Everywhere event. The Core Ultra 5 and Core Ultra 7 processor models are already available in new PCs. Intel expects to roll out the Core Ultra 9 processors “in the coming months,” Yahoo! Finance reports.

Bloomberg reported that Intel announced “updated Xeon server chips.” These chips “use less electricity while boosting performance and memory.”

The Bloomberg report also cited Intel’s Ultra Core chips for use in laptops and desktop computers. Circling back to the topic of AI, these Ultra Core chips “will let PCs process AI functions directly.”

On top of all that, Intel introduced its Gaudi 3 AI accelerators. This product lineup is high-stakes for Intel, as it will compete directly with rivals’ AI-compatible chips.

Intel Stock May Be Worthy of a Small Allocation

Investors shouldn’t just assume that Intel stock will rally in 2024. There’s no guarantee that Intel’s foundry business will thrive. Intel still has to compete against heavily favored AI chipmakers.

Gelsinger’s confidence is notable and some investors might appreciate Intel’s willingness to compete against its rivals. Therefore, INTC stock earns a “B” grade and you might wish to add a few shares to your portfolio for the coming year.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.