The Clear Linux OS team has announced the shutdown of the project, marking the end of its 10-year existence in the open-source ecosystem.

Clear Linux is a Linux distribution developed and maintained by Intel, featuring aggressive optimizations for Intel hardware. Binaries are compiled using tuning flags designed explicitly for Intel CPUs.

It was a minimalist, modular OS that utilized software bundles for faster app installation and automatic performance tuning for optimal speed and power efficiency.

The distribution was primarily aimed at software developers, performance enthusiasts, and those working in cloud or server environments.

In an announcement to the Clear Linux forums, the team says the project will no longer receive security patches or any other updates. Therefore, its user base should migrate to other distributions for safety.

“Effective immediately, Intel will no longer provide security patches, updates, or maintenance for Clear Linux OS, and the Clear Linux OS GitHub repository will be archived in read-only mode,” reads the announcement.

“So, if you’re currently using Clear Linux OS, we strongly recommend planning your migration to another actively maintained Linux distribution as soon as possible to ensure ongoing security and stability.”

Although Intel has not officially explained why it’s shutting down the project, it could be due to low user adoption coupled with a high maintenance burden.

Considering that Clear Linux OS relied on its own package management and update system, as it is not a fork of another distribution, it required substantial engineering resources to provide user support.

Another key point may be Intel’s ongoing efforts to consolidate and tighten its operations, scaling back niche internal projects that don’t provide strategic value, and focusing more on new targets, such as agentic AI.

Although Clear Linux OS is now abandoned, the team behind it says it will remain invested in the Linux ecosystem and continue to provide Intel hardware optimizations that can be applied to other distributions and open-source software.

If you rely on Clear Linux OS, you are recommended to migrate to another distribution as soon as possible, as the lack of updates means the system will become vulnerable to flaws with known/public exploits in a short time.

Intel (INTC -1.59%) has already pulled back on its effort to directly compete with Nvidia in the AI accelerator market. The company’s Gaudi line of AI chips held promise, but immature software and an unfamiliar architecture ultimately doomed Intel’s flagship AI offerings. The company later axed Falcon Shores, which was meant to succeed Gaudi 3 as a more traditional GPU, instead shifting its focus to rack-level solutions.

Reporting from The Oregonian suggests that Intel may now be pulling back further. In a recent broadcast to employees, CEO Lip-Bu Tan laid out some hard truths as the company embarks on a turnaround plan. One statement seems to put a nail in the coffin for Intel’s AI chip efforts: “On training I think it is too late for us.” Tan noted that Nvidia’s market position was too strong to catch up.

Image source: Getty Images.

AI is still an opportunity for Intel

There are two distinct markets for AI accelerators. First, there’s AI training, which uses powerful GPUs and mountains of data to train AI models in a computationally intensive process. The Grok 3 AI model from xAI used a cluster of 100,000 Nvidia H100 GPUs for training. Nvidia dominates the market for AI training chips, in part because its data center GPUs are the most powerful available.

Second, there’s AI inference. Once an AI model has been trained, inference is the process of using that trained model. For the most advanced AI models running in cloud data centers, inference still requires extremely powerful GPUs with lots of ultra-fast memory. For smaller AI models, less powerful hardware can be more than sufficient.

Tan is right: At this point, there’s probably no chance Intel will catch up in the AI training market. However, AI inference could ultimately be an even larger opportunity. Cloudflare, a leading edge-computing provider, has been predicting that inference would be a larger market than training in the long run. Cloudflare offers a variety of smaller AI models through its platform, and it can get away with using older, less powerful AI accelerators while still providing acceptable response times for its users.

AI inference, as well as agentic AI, will be Intel’s focus from here on out, according to Tan. Speaking about agentic AI, Tan said: “That’s an area that I think is emerging, coming up very big and we want to make sure that we capture.” AI chips in edge data centers and directly inside devices like PCs designed to run fully trained AI models are areas where Intel could still win.

Some companies are pushing toward smaller, more efficient AI models capable of being run on cheaper hardware. IBM recently previewed its Granite 4.0 Tiny AI model, which will be capable of running on consumer-grade GPUs that cost just a few hundred dollars rather than data center GPUs that can cost tens of thousands of dollars. Selling AI chips that can run these types of models efficiently could be a huge market opportunity for Intel.

Unanswered questions

One big unknown right now is whether Intel will continue developing rack-scale AI solutions. The company previously stated that it would focus on Jaguar Shores, originally meant to succeed the now-defunct Falcon Shores, in the context of a rack-scale AI solution. It’s unclear if Tan’s statements mean that Intel is giving up on Jaguar Shores, or if Tan still sees rack-scale AI solutions as a viable market for the company.

Either way, it seems that Intel is refocusing its AI efforts on inference and largely ceding the AI training market to Nvidia and AMD. Given where Intel is today, this new strategy makes sense. However, as Tan noted in his communication with employees, a turnaround for Intel is going to be a “marathon.”

Rumor mill: Since their launch in early 2022, AMD’s X3D CPUs have become the most-sought after CPUs for PC gamers who want top performance, thanks largely to their 3D V-Cache technology, which enables higher frame rates and smoother gameplay. Intel is now reportedly planning to counter AMD’s recent dominance in high-end gaming by incorporating similar technology in its upcoming Nova Lake CPUs.

According to tipster @Haze2K1, at least two SKUs in the Nova Lake lineup will ship with increased L3 cache. Intel calls the new technology “bLLC,” which is short for “big Last Line Cache.” The leaker added that both SKUs with bLLC will feature 8 P-cores and 4 LP-E cores. One will be paired with 20 E-cores, while the other will include only 12. Both chips are expected to have a 125W TDP.

bLLC is an integral part of Intel’s latest Clearwater Forest server CPUs, but the company has so far denied plans to bring the technology to its consumer lineup.

In a November 2024 interview with YouTubers der8auer and Bens Hardware, Intel’s Tech Communications Manager, Florian Maislinger, stated that Team Blue had no plans to introduce a 3D V-Cache-like technology in its desktop processors.

8p, 16e
8p, 12e

Both 4lpe, bLLC, 125w https://t.co/EQo4MiaGpq

– Haze (@Haze2K1) June 17, 2025

In the Clearwater Forest chips, the local cache is integrated into the base tile, which sits beneath the active tiles and acts as an interconnect. Adding more cache to the base tile would make the Nova Lake processors structurally similar to AMD’s 9000-series X3D chips, which also feature V-Cache attached to the bottom of the CPU dies.

Intel’s future lineup will reportedly be led by the flagship Core Ultra 9 485K with 52 cores and a 150W TDP, while the entry-level chip is expected to be the Core Ultra 3 415K, featuring 12 cores and a 125W TDP.

In the first two generations of X3D, AMD placed the V-Cache on top of the CPU chiplets, which led to poor thermals and throttled clock speeds. With its third-generation X3D lineup, AMD moved the V-Cache beneath the chiplets, improving both thermal performance and clock behavior.

Nova Lake-S is expected to launch in late 2026 or early 2027 and is rumored to include at least six desktop SKUs. The lineup will reportedly be led by the flagship Core Ultra 9 485K with 52 cores and a 150W TDP, while the entry-level chip is expected to be the Core Ultra 3 415K, featuring 12 cores and a 125W TDP. The processors are also tipped to use the all-new LGA 1954 packaging and a new socket.

Intel (INTC 2.16%) launched its Arrow Lake family of desktop central processing units (CPUs), officially the Core Ultra 200 series, in late 2024. The company outsourced most of the manufacturing to TSMC, moved to a chiplet-based architecture, and managed to improve energy efficiency substantially, compared to its previous-generation chips. For productivity tasks, Arrow Lake performed well.

However, there were two problems. First, Arrow Lake’s gaming performance fell flat, losing to Intel’s last-gen chips. Some software fixes have improved the situation, but for those looking to squeeze every last frame per second out of their gaming PC, Arrow Lake isn’t the answer.

Second, pricing was on the high side. Not only were Arrow Lake CPUs expensive on their own, but they also required a new motherboard, making all upgrade paths pricier.

Arrow Lake CPUs have been selling below Intel’s original suggested retail pricing for a while, but the company is now officially slashing prices on one of its chips. The 265K, a mid-range part that was originally priced at $399, now has a suggested retail price of $299. Suggested retail prices for the higher end 285K and the lower end 245K are staying put, although actual retail prices vary.

While Intel’s price cutting is limited, the 265K is in the sweet spot for many potential customers, with most of the performance of the 285K for much less money. Featuring eight performance cores and 12 efficiency cores, the 265K is a solid all-arounder that falls a bit short in gaming and makes a lot more sense at $299 than it did at $399.

Image source: Getty Images.

A sign of things to come?

Intel replaced its CEO in March with Lip-Bu Tan, a veteran of the semiconductor industry and a critic of Intel’s sluggish pace and bureaucratic nature. Tan’s strategy revolves around cutting a bloated cost structure, putting out better products faster, and listening to customers. More aggressive pricing could be part of the equation as Intel looks to make Arrow Lake more competitive.

AMD‘s latest Ryzen 9000 series CPUs didn’t get great reviews, and retail pricing quickly dropped to reflect muted demand. But the Ryzen 9000 series looks a lot better relative to Arrow Lake, especially with Arrow Lake’s sky-high initial pricing.

AMD’s gaming-centric X3D variants, which feature ultra-fast cache memory capable of boosting gaming performance, are the undisputed kings of gaming CPUs. AMD noted in its first-quarter report that there was strong demand for its newest Ryzen chips, likely at the expense of Intel.

Intel also cut the prices of its Granite Rapids server CPUs in January, although there was no official announcement. The Granite Rapids family is the best set of server CPUs that Intel has put out in years, and it largely caught up to AMD in terms of core counts, performance, and efficiency. But like Arrow Lake, pricing skewed high.

There was a time not long ago, before AMD’s comeback, when Intel faced no real competition in either the PC or server CPU markets. The company’s dominance afforded it the ability to price its products high and generate impressive profit margins. With AMD now highly competitive and stealing market share, that era is over. With price cuts for Granite Rapids and Arrow Lake, Intel appears to finally recognize that it needs to compete on price to win back market share.

Intel has a long road ahead as it attempts to turn itself around. If recent price cuts are any indication, more aggressive pricing will likely be part of Tan’s strategy as he looks to stop the bleeding and regain some lost market share from AMD.

The semiconductor sector is growing rapidly thanks to the rise of artificial intelligence (AI), making it a great area to invest in. The industry saw 19% year-over-year revenue growth to $627 billion in 2024, and is forecast to hit $981 billion by 2029.

Two giants of the industry to consider investing in are Intel (INTC -3.38%) and Nvidia (NVDA -5.45%). The former enjoyed decades of dominance in the PC arena. The latter flourished as its semiconductor chips proved popular for AI.

Reasons exist to buy shares in one or the other. But which might be the better semiconductor investment for the long haul? Here’s a look at Intel and Nvidia to answer that question.

Intel’s pros and cons

One factor making Intel a compelling investment is that its shares look undervalued. The stock’s price-to-book (P/B) ratio was 0.87 at the time of writing, and this indicates shares are valued lower than Intel’s assets.

The semiconductor veteran’s bargain stock price is the result of a challenging 2024 fiscal year, which ended Dec. 28. Revenue for the year fell to $53.1 billion from $54.2 billion in the 2023 fiscal year. That’s a disappointing result for a semiconductor giant amid the AI boom.

One reason for the sales drop was the poor performance of Intel’s foundry business. While both Intel and Nvidia produce semiconductor chips, Intel owns foundries that manufacture its chips. Nvidia is a fabless chipmaker, meaning it outsources the fabrication of its semiconductor products.

Intel’s fiscal 2024 foundry revenue dropped to $17.5 billion from $18.9 billion in 2023. At the same time, costs increased, and this double whammy squeezed Intel’s gross margin, which dropped to 32.7% in fiscal 2024 compared to 40% in the prior year. As a result, the company exited fiscal 2024 with a net loss of $19.2 billion.

But not all is doom and gloom for Intel. The company has begun manufacturing chips for other companies. Microsoft and Amazon are among its customers as both seek to use custom chips to power their AI ambitions.

Outside its foundry business, Intel’s semiconductor products saw 3% year-over-year revenue growth to $48.9 billion in fiscal 2024. Its latest PC chip, dubbed Panther Lake, debuts later this year, and that should boost Intel’s product sales in fiscal 2025.

Reasons to consider Nvidia

Nvidia may not manufacture its chips, but its leadership in AI chipset designs won over customers to the tune of $130.5 billion in revenue during its 2025 fiscal year, ended Jan. 26. This represented a 114% year-over-year increase.

Because it’s not weighed down by the costs of running a foundry, Nvidia’s gross margin was a strong 75% in fiscal 2025, up from 72.7% in the prior year. Consequently, net income increased 145% year over year to $72.9 billion.

Nvidia’s financials are strong, and so is its latest AI tech. In March, the company unveiled the Blackwell Ultra platform. This product is so powerful, it enables AI to “explore different solutions to problems and break down complex requests into multiple steps, resulting in higher-quality responses,” according to the company.

As a result, the Blackwell Ultra brings AI systems closer to mimicking human thinking, going beyond simply identifying patterns in data to contemplating what the best answer to a problem might be. This advancement ushers in what’s referred to as the age of AI reasoning, the next evolution of artificial intelligence.

To meet this higher level of AI aptitude, companies require more powerful computing capabilities. That’s where Blackwell Ultra comes in. Tech titans, including Microsoft and Amazon, already are adopting Blackwell Ultra.

Picking between Intel and Nvidia

In weighing Intel against Nvidia, the former’s stock looks like a bargain, but its business performance is underwhelming. For instance, Intel estimates between $11.7 billion and $12.7 billion in fiscal first-quarter revenue. The company generated $12.7 billion in the prior year, so Intel doesn’t expect sales growth this Q1.

Meanwhile, Nvidia anticipates its strong growth streak to continue this year. Fiscal Q1 sales are expected to hit $43 billion, a 65% increase over the previous year’s $26 billion.

In addition, recent stock market volatility pushed down Nvidia’s share price, which made its valuation more attractive. Here’s a look at the price-to-sales (P/S) ratio for both companies to assess their stock valuations.

Data by YCharts.

Nvidia’s P/S ratio hovers near a low point for the past year. Intel’s P/S multiple is far below its rival’s, but its poor business performance doesn’t warrant a high valuation.

Intel could become a turnaround story. The company brought on a new CEO, Lip-Bu Tan, in March. But even if Tan pulls off the turnaround that’s eluded Intel under previous leadership, it could take years.

In contrast, Nvidia is firing on all cylinders, and its Blackwell architecture looks to fuel more growth as AI tech evolves. For these reasons, Nvidia is the superior semiconductor stock to invest in for the long term.

What just happened? Intel announced a significant revision to the construction timeline of its Ohio One semiconductor manufacturing site in New Albany. The setback is the third substantial delay from the facility’s original 2025 completion target. Intel emphasizes its commitment to the project and its ability to accelerate construction if market demand warrants.

The first phase of the facility, known as Mod 1, should be finished in 2030, with chip production beginning between 2030 and 2031. The company’s revised timeline also affects the project’s second phase, Mod 2, pushing it back to a 2031 completion date, with operations beginning in 2032.

The Ohio One campus, once dubbed the “Silicon Heartland,” is an ambitious undertaking. It will span approximately 1,000 acres and include up to eight semiconductor fabrication plants. The site will also accommodate support operations and industry partners. Initial investment estimates were around $20 billion, with potential for up to $100 billion in total development costs.

Despite the frequent delays, the site has made significant construction progress since work began in 2022. Key milestones include completion of the underground foundation, commencement of above-ground construction, installation of air separation units and underground piping, pouring over 200,000 cubic yards of concrete, and more than 6.4 million hours of invested labor.

The revised timeline reveals that the Ohio facilities will utilize process technologies developed after Intel’s 14A and 14A-E nodes, currently scheduled for introduction in 2026-2027. These advanced manufacturing processes will likely rely on ASML’s cutting-edge High-NA EUV lithography tools, costing around $350 million each.

Intel has already begun hiring and training employees for the Ohio facility. Workers are receiving training at existing Intel sites in Arizona, New Mexico, and Oregon, preparing them for the eventual opening of the local facility.

Intel’s decision to delay the Ohio plant opening comes amid a challenging period for the company and the semiconductor industry. The past year has seen Intel grappling with financial losses, layoffs, and leadership changes. The company has also made strategic decisions to simplify its product roadmap, including canceling an AI chip project.

While the delay may raise concerns about Intel’s outlook on future demand, it also allows the company to manage its capital expenditures more effectively during market uncertainty. By postponing significant investments in production equipment, Intel can focus on returning to profitability while maintaining the flexibility to ramp up operations when market conditions improve.

Shares of Intel (INTC -3.94%) were on the move this week, on a number of different news items as investors seemed to spy opportunity in the beaten-down legacy chipmaker.

While the company has mostly played the role of the aging laggard in the artificial intelligence (AI) boom, this week’s developments were a reminder that the stock has a number of assets that are arguably undervalued.

According to data from S&P Global Market Intelligence, the stock was up 26% for the week as of Thursday’s close.

Image source: Getty Images.

Wall Street rumors buoy Intel

Intel is in the middle of yearslong pivot of opening its foundry business up to new customers. After forcing CEO Pat Gelsinger out in December, there have been questions about whether Intel would sell the foundry business outright and just seek to be a chip designer.

However, that asset base also makes Intel attractive at a time when U.S. policy is to move chip production back to the U.S.

That logic ties into the two primary factors lifting Intel stock this week. First, rumors started circulating that TSMC, the world’s biggest chip foundry, could form some kind of joint venture with Intel to help it manufacture advanced chips in the U.S. These rumors don’t seem to have come from either company, and instead evolved in the media based on the federal government’s desire to make the U.S. a hub of chip manufacturing.

Relatedly, the stock also got a jolt after Vice President JD Vance said that the Trump administration would “ensure that the most powerful AI systems are built in the U.S. with American designed and manufactured chips.”

Investors interpreted that as a good sign for Intel.

Is Intel’s foundry biz an asset or an albatross?

Intel is losing billions of dollars a year, but the company is the biggest U.S. chip manufacturer, giving it a possible advantage at a time when the federal government wants to bring chip production home.

Making that policy a reality has so far proven harder than expected, and some lawmakers have cast doubt on whether it’s wise for the U.S. to pour billions into the struggling company through the CHIPS Act.

At this point, this week’s gains seem to be mostly based on conjecture, but it does show the potential for the foundry business to drive a recovery in the stock. Still, that alone isn’t a reason to buy Intel stock.