Intel bets on Core Ultra Series 3 to reclaim ground in AI computing

Intel has unveiled a new generation of processors that it hopes will help restore its relevance in artificial intelligence and advanced computing, as the company works through a broader turnaround following years of strategic missteps and rising competition.

The Core Ultra Series 3 chip, introduced this week at the CES technology conference in Las Vegas, is central to Intel’s effort to modernize its product lineup and extend its reach beyond traditional personal computers. Company executives say the processor is designed not only for laptops, but also for emerging AI-driven devices such as robots, which Intel views as a potential long-term growth area.

The announcement comes at a critical moment for the US chipmaker, which has recently received a significant investment from the US government and is operating under new leadership after Lip-Bu Tan took over as chief executive last March.

Rebuilding after a decade of setbacks

Once the undisputed leader in semiconductor manufacturing, Intel has spent much of the past decade losing ground to rivals such as Nvidia, Qualcomm and AMD, particularly in mobile computing and AI acceleration. While Intel remains the dominant supplier of processors for laptops and desktop computers, that lead has narrowed as competitors introduce more power-efficient and AI-focused designs.

According to the International Data Corporation, Intel accounted for more than 71% of the global PC processor market in 2024, underscoring its continued strength in the sector. However, Apple’s decision in 2020 to replace Intel chips in MacBooks with its own processors highlighted the vulnerability of Intel’s traditional business. The company also cut about 15% of its workforce last year as part of cost-reduction efforts.

Intel shares have struggled over the longer term, falling more than 18% over the past five years, despite a strong rebound more recently. The stock rose sharply in 2025 and remains significantly higher year-on-year, reflecting renewed investor optimism around the company’s strategy.

Core Ultra Series 3 and the AI push

Jim Johnson, head of Intel’s client computing group, said the Core Ultra Series 3 is designed to strengthen Intel’s core PC business while preparing the company for a future in which AI workloads are increasingly processed on devices rather than in distant data centers.

The new chip will appear in more than 200 PC designs this year, according to Intel, and is expected to ship in most major new laptops. Johnson said the processor focuses on traditional features valued by consumers, such as battery life, while also improving performance for AI-enabled tasks.

Those tasks include coding assistants, on-device language models and video conferencing applications that use AI to enhance audio and image quality. Intel argues that processing these functions locally can reduce latency and improve privacy.

“There’s no single definition of what people want from AI,” Johnson said in an interview at CES. Different users, he added, have different needs depending on whether they are working, gaming or creating content.

Looking beyond PCs

Intel’s ambitions extend well beyond laptops. Johnson said the company sees a large opportunity in devices that sit “between PCs and the cloud,” including robots and other autonomous systems that require real-time AI processing.

One early example is Oversonic Robotics, a company developing humanoid robots for healthcare and industrial settings. Oversonic plans to switch from Nvidia processors to Intel’s Core Ultra Series 3 chips for certain robotic applications, citing lower costs and faster on-device processing. The robots will still rely on Nvidia technology to train AI models, according to Intel.

The move reflects Intel’s broader strategy to position its processors as efficient alternatives for edge computing, where AI tasks are handled locally rather than relying on constant cloud connectivity.

Competition remains intense

Intel’s renewed push comes as rivals accelerate their own AI-focused strategies. At CES, AMD announced new laptop processors capable of running larger AI models directly on devices, reducing the need for cloud-based processing. Qualcomm, traditionally stronger in smartphones than PCs, also unveiled a new laptop chip that it says offers multi-day battery life and is optimized for AI workloads.

Meanwhile, Nvidia continues to dominate the data center market that underpins most large-scale AI services. Its processors are widely used to train and deploy advanced AI models, and the company has expanded aggressively into robotics, unveiling new AI models and healthcare-focused robotic systems at CES.

Despite Intel’s progress, analysts caution that some of the markets it is targeting remain uncertain. Bill Ray, a robotics analyst at Gartner, said humanoid robots are still rarely deployed at scale and face significant technical and physical limitations.

Leadership and government backing

Under Tan, Intel is also seeking to change its internal culture and execution. Johnson said the chief executive has emphasized direct communication and responsiveness to customer feedback, encouraging senior leaders to surface problems quickly rather than shielding them.

That cultural reset is taking place alongside increased government involvement. The US government acquired roughly a 10% stake in Intel last year, part of a broader push to strengthen domestic semiconductor manufacturing.

President Donald Trump highlighted that support in a recent post on Truth Social, saying the administration was “proud to be a shareholder of Intel” and reiterating its commitment to bringing advanced chip production back to the United States. Trump said he had recently met with Tan and praised Intel’s manufacturing footprint in the country.

Cautious optimism

Intel executives acknowledge that regaining lost ground will require consistent execution over several years, particularly as competitors continue to innovate rapidly. For now, the company is betting that a combination of improved chip design, a broader AI strategy and political backing can help it stabilize its core business and open new avenues for growth.

“I see Intel getting back in shape like it used to be,” Johnson said.

Whether that confidence translates into sustained leadership in AI hardware will depend on how well Intel’s new chips perform in real-world deployments—and how quickly emerging markets such as robotics mature.