INTC beat earnings estimates and profit is way up, woohoo! Their quarterly revenue is actually lower than the last two quarters, but no one cares because their ai datacenter focused chips are selling more. They also said this:
Intel said during its Q1 2026 earnings call that the ratio of CPUs to GPUs deployed in data centers could tighten by as much as 1:1 in agentic scenarios.
Supposedly the ratio used to be 1:8 (meaning gpu heavy). This, if true, is pretty bad news for NVDA. So naturally NVDA stock is ripping higher. Because clearly a change in this gpu to cpu ratio means that we will now build 8x as many datacenters to help keep NVDA growing.
We are in the ai euphoria stage. No on wanted to touch these companies two months ago, and now? AI has no limits, no price is too high.
Some info on CPU’s that you should know. About 1/3 of these ai datacenter CPU’s are being deployed in existing datacenters to replace and upgrade less efficient chips. The timeline to replace ALL existing chips that were installed pre 2024 is 4-5 years. And current production capacity can do that while also fulfilling all new datacenter builds at our current pace of construction. But we aren’t sticking with current production capacity, we are ramping it up as much as possible. So we are absolutely heading towards a future where we overproduce datacenter CPU’s, and we already overproduce ai gpu’s (due to datacenter construction delays). The only real bottleneck is memory, hbm, dram etc.
So the question has to be asked, why the hell are we speeding towards the brick wall with this infinite ai buildout nonsense? Do we seriously believe that datacenter construction is going to double or triple globally from the current pace so that supply does not outstrip demand for gpu’s and CPU’s over the next two years? Or, just maybe, are we running the market higher because the government wants markets at all time highs come November? Remember Zuckerberg’s comment to Trump last year? “Is that the number you wanted me to say?” when he was announcing META’s capex plans at that public dinner? My theory: after the midterms, its lights out. Ai bubble pops. Until then, turn your brain off. Ai money is infinite, buildout is infinite. There will never be enough of anything related to ai, ever. So buy buy buy! lol