10 Best Performing AI Stocks to Buy

7. Intel Corporation (NASDAQ:INTC)

6-Month Performance: 67.60%

Intel Corporation (NASDAQ:INTC) is one of the best-performing AI stocks to buy. On April 9, TD Cowen increased its price target on Intel Corporation (NASDAQ:INTC) from $50 to $60 and kept its Hold rating on the stock.

Analyst Joshua Buchalter noted that Intel Corporation (NASDAQ:INTC) is in a strong position to benefit in the near term from the changing demand for server CPUs and shortages because it is not dependent on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) for capacity. TD Cowen noted that although Intel Corporation (NASDAQ:INTC) has outsourced some PC components and tiles to Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), its server CPU production is largely done in-house.

The research firm added that Intel Corporation (NASDAQ:INTC) may capture additional server demand thanks to insulation from Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) bottlenecks. TD Cowen pointed out that this depends on the company’s ability to produce more advanced node parts and on customer demand, which has recently leaned more toward older 10/7 generation Intel Corporation (NASDAQ:INTC) products.

Additionally, TD Cowen noted that Intel Corporation (NASDAQ:INTC) is trading at about 63 times its expected EPS for 2027. While the firm sees some recent progress, it still finds the stock’s valuation difficult to justify.

Intel Corporation (NASDAQ:INTC) is an American company that manufactures central processing units (CPUs) and semiconductors.