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3D Imaging Market Growth Size, Opportunities, Future Scope, Business Scenario, Share, Key Segments And Forecast To 2028

3D Imaging Market Growth Size, Opportunities, Future Scope, Business Scenario, Share, Key Segments And Forecast To 2028

Globe and Mail04-06-2025
"GE Healthcare (US), Autodesk (US), STMicroelectronics (Switzerland), Panasonic (Japan), Sony Corporation (Japan), Trimble (US), FARO Technologies (US), Philips (Netherlands), Google (US), Adobe (US), HP (US), Dassault Systemes (France), Bentley Systems (US), Lockheed Martin (US), Topcon (Japan), Able Software (US), Maxon (Germany)."
3D Imaging Market by Hardware (3D Cameras, 3D Sensors, 3D Scanners), Software (Modeling, Scanning, Layout & Animation, Visualization & Rendering, Image Reconstruction), Technology (Stereoscopic Imaging, Laser-based Imaging) - Global Forecast to 2028.
The global 3D imaging market is expected to expand at a compound annual growth rate (CAGR) of 20.8% from USD 34.3 billion in 2023 to USD 88.4 billion by 2028. On flat surfaces, 3D imaging creates depth-perceptive three-dimensional images that replicate depth perception in the actual world. This technology is widely used in many different industry verticals, including as manufacturing, healthcare and life sciences, automotive, retail and e-commerce, aerospace and defense, and others. In order to simulate depth perception, technologies like stereoscopy use two camera lenses that are slightly separated to capture 3D images on 2D planes. This wide range of techniques highlights how 3D imaging revolutionizes the way that digital content is perceived and affects graphics across industries.
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Automotive sector to hold the largest market size during the forecast period.
3D imaging in the automotive sector revolutionizes safety systems such as LiDAR for ADAS and self-driving cars, enabling detailed environment mapping and object recognition. Beyond safety, it optimizes maintenance and repairs by providing accurate diagnostics. Additionally, it enhances customer experiences through immersive interactions, allowing virtual exploration of vehicles. By elevating safety measures, improving maintenance efficiency, and offering engaging customer interactions, 3D imaging reshapes the automotive landscape toward safer, more efficient, and consumer-centric advancements.
Services Segment to hold the highest CAGR during the forecast period.
The surging demand for real-time 3D solutions across diverse industries drives the emergence of 3D services tailored for medical imaging, scanning, architectural design, and animation in movies. These services are integral, offering product upgrades, maintenance, training, and consulting, vital in leveraging 3D imaging effectively. It expedite the creation, assessment, and utilization of 3D models, saving time and effort compared to traditional imaging methods. Incorporating managed and professional services further enhances 3D imaging solutions, streamlining processes and maximizing the efficiency of diverse applications within this dynamic technological landscape.
Asia Pacific to exhibit the highest CAGR during the forecast period.
The Asia Pacific region showcases robust and progressive adoption of new technologies, poised to achieve the highest CAGR in the forecasted period. The proliferation of high-end machinery across diverse industries propels the demand for 3D imaging hardware, software, and services. Key countries such as China, India, Japan, and other Asia Pacific countries contribute significantly to advancing 3D displays and image sensors. Verticals such as healthcare, manufacturing, automotive, retail, media, and architecture are embracing cloud adoption vigorously in Asia Pacific. The region's cost efficiency fuels manufacturing, making it a hub for companies, this drives the demand for 3D sensors, pivotal for monitoring and inspecting components in manufacturing processes.
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Unique Features in the 3D Imaging Market
The 3D imaging market is defined by its use of advanced technologies like structured light, laser scanning, stereoscopic vision, and time-of-flight (ToF) sensors. These technologies enable accurate depth perception and spatial recognition, which are critical for applications in sectors such as healthcare, automotive, and entertainment.
A standout feature in modern 3D imaging is the ability to render and process images in real time. This is especially vital in applications like augmented reality (AR), virtual reality (VR), and robotics, where dynamic environmental data needs to be captured and interpreted instantly.
The integration of artificial intelligence (AI) and machine learning (ML) enhances 3D imaging systems by allowing automated recognition, classification, and analysis of 3D data. This has led to improvements in medical diagnostics, facial recognition, and industrial quality control.
3D imaging systems are increasingly offering micron-level precision, which is essential in applications such as surgical planning, prosthetics design, and aerospace component inspection. This level of accuracy surpasses that of traditional 2D imaging.
Major Highlights of the 3D Imaging Market
The 3D imaging market has seen substantial growth in recent years, driven by increasing demand across industries such as healthcare, automotive, aerospace, entertainment, and manufacturing. Factors such as technological advancements, growing adoption of automation, and the proliferation of digital content have contributed significantly to this market expansion.
3D imaging is no longer confined to traditional sectors. It is now extensively used in areas like medical diagnostics (MRI, CT scans), industrial inspection, urban planning, gaming, and virtual prototyping. Its ability to provide accurate visual representations makes it a valuable tool across both consumer and enterprise segments.
Innovations in sensor technology, artificial intelligence, computer vision, and 5G connectivity are driving the capabilities of 3D imaging systems. These advancements are enabling higher resolution, faster processing speeds, and more compact devices, which make the technology more accessible and efficient.
The surge in demand for augmented reality (AR) and virtual reality (VR) experiences in gaming, retail, training, and remote collaboration is a major driver. 3D imaging forms the backbone of immersive content creation, enabling realistic simulations and environments that enhance user interaction and engagement.
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Top Companies in the 3D Imaging Market
Major vendors in the global 3D Imaging market are GE Healthcare (US), Autodesk (US), STMicroelectronics (Switzerland), Panasonic (Japan), Sony Corporation (Japan), Trimble (US), FARO Technologies (US), Philips (Netherlands), Google (US), Adobe (US), HP (US), Dassault Systemes (France), Bentley Systems (US), Lockheed Martin (US), Topcon (Japan), Able Software (US), Maxon (Germany), ESRI (US), Archilogic (Switzerland), Pix4D (Switzerland), Brainkey (US), Precismo (US), Kaarta (US), LightCode Photonics (Estonia), Vzense Technology (US), Capoom (Istanbul), Atomontage (US), Hivemapper (US), Shapr3D (Hungary), Innersight (UK).
GE Healthcare, a division of GE (NYSE: GE), holds a prominent position in the healthcare sector, offering a diverse range of medical technology, pharmaceutical diagnostics, and digital solutions. Its Edison intelligence platform and smart devices empower healthcare professionals to make swift, well-informed decisions, integrating data analytics and applications. With a legacy spanning over a century and a global workforce of around 48,000 employees, GE Healthcare operates at the core of a collaborative healthcare ecosystem. Its primary focus revolves around advancing precision health by digitizing healthcare processes, fostering productivity, and enhancing patient and provider outcomes worldwide.
The company's dedication to innovation and leading-edge technology cements their role as pioneers in driving healthcare transformation. Its holistic approach, merging technology, data analytics, and services, aligns seamlessly with the dynamic needs of the healthcare domain. Through fostering collaboration and drawing upon their extensive expertise, GE Healthcare continues to significantly impact healthcare delivery and patient care on a global scale.
Autodesk is revolutionizing global design and production across multiple industries such as architecture, construction, manufacturing, media, and entertainment. Its comprehensive suite of software, including AutoCAD, Revit, Maya, 3ds Max, Fusion 360, SketchBook, and more, is utilized by over 100 million users worldwide. These tools serve as catalysts for unlocking creativity while addressing crucial design, business, and environmental challenges. Accessible on both personal computers and mobile devices, Autodesk software harnesses the infinite computational capabilities offered by the cloud. This enables seamless collaboration and the realization of intricate 3D concepts for teams across the globe. From enabling the creation of environmentally sustainable buildings to revolutionizing product innovation and contributing to visually stunning entertainment, our tools play a pivotal role in shaping a better world.
Trimble is a technology leader, offering transformative solutions that redefine how industries measure, build, evolve, and transport goods, ultimately enhancing the quality of life. Through pivotal technologies such as positioning, modeling, connectivity, and data analytics, Trimble serves as a bridge between the digital and physical worlds. This integration aims to elevate productivity, enhance quality, ensure safety, increase transparency, and promote sustainability across various sectors.
Trimble's diverse portfolio, ranging from purpose-built products to comprehensive enterprise solutions and industry-specific cloud services, holds the power to revolutionize critical industries such as construction, geospatial mapping, agriculture, and transportation. By infusing innovation into these sectors, Trimble enables an interconnected ecosystem, fostering a world where work thrives on seamless connectivity, efficiency, and adaptability. Its vision and commitment to leveraging technology for the betterment of industries and society drive their efforts to create an interconnected global landscape where progress and efficiency go hand in hand.
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AirJoule Technologies Announces Second Quarter 2025 Results
AirJoule Technologies Announces Second Quarter 2025 Results

Globe and Mail

time2 hours ago

  • Globe and Mail

AirJoule Technologies Announces Second Quarter 2025 Results

RONAN, Mont., Aug. 13, 2025 (GLOBE NEWSWIRE) -- AirJoule Technologies Corporation (NASDAQ: AIRJ) ('AirJoule Technologies' or the 'Company'), a leading technology platform that unleashes the power of water from air, today announced its second quarter 2025 results. Second Quarter 2025 & Recent Highlights Key Milestones A250™ Product Expands AirJoule ® Technology Platform: The A250™ system will be commercialized for the industrial dehumidification market, which is largely serviced by inefficient legacy technologies. The A250™ uses AirJoule ® 's technology platform to produce dehumidified air with up to 80% energy savings and up to 60% lower total cost of ownership compared to incumbent dehumidification systems. The AirJoule ® technology is a platform that supports differentiated water generation and dehumidification products. The Company is also commercializing the A1000™ water generator, which is designed for on-site production of industrial-scale quantities of distilled water using low-grade waste heat to achieve unprecedented efficiency. Strategic Collaborations to Advance AirJoule ® Commercialization: Signed Memorandum of Understanding with a developer of hyperscale data centers to collaborate on the use of AirJoule ® to generate pure distilled water from ambient air using low-grade waste heat generated by data center operations. Commenced a strategic project with GE Vernova to explore the integration of AirJoule ® technology into GE Vernova products with a focus on the utilization of low-grade waste heat to produce water. Continued Progress on Initial Projects: Announced a project with the City of Hubbard, Texas to recover heat from a geothermal water well and use it to produce pure, distilled water from air. The Company expects to deploy an A250™ system in Q4 2025, which will be the first field deployment demonstrating AirJoule ® 's ability to utilize low-grade waste heat to drive its proprietary water separation process. Expect to deliver an A250™ system to Arizona State University ('ASU') in Fall 2025, where it will be used for research and evaluation purposes. ASU operates atmospheric water harvesting test sites in the Phoenix area and will independently evaluate AirJoule ® 's performance across a range of real-world conditions, including arid climates and variable humidity levels. Ongoing field deployment of the AirJoule ® platform at a government research facility in Dubai. Coordinated through the Company's UAE-based partner TenX Investment, the field deployment is showcasing AirJoule ® 's capabilities to potential public and private sector customers in the Middle East region. Appointed Two Board Directors with Expertise in Data Centers and Financial Oversight: Denise Sterling most recently served as Chief Financial Officer of Core Scientific, Inc., a leading data center developer and operator, from 2022 to 2025. Prior to joining Core Scientific in 2021, she held the position of Senior Vice President of FP&A and Finance at Oportun, a financial services company focused on consumer credit, from 2018 to 2021. Ms. Sterling previously served in various tax and finance roles for Visa from 1995 to 2018, including as Senior Vice President of the Global Risk Management team from 2016 to 2018. Thomas Murphy, who will chair the Company's Audit Committee, previously held leadership roles as a Partner in the Audit and Advisory practices at Crowe LLP until his retirement in 2020. During his time at Crowe LLP, Mr. Murphy served as the Partner in Charge of the SEC Commercial Audit Practice, as well as Lead Partner for several prominent private equity clients. He also played a key role in launching the Advisory group's data analytics practice. Prior to joining Crowe in 1993, he served as a Senior Manager at EY. Expanding Operations in Newark, DE: Expanded the manufacturing facility in Newark, DE to enable increased capacity for manufacturing and environmental testing of AirJoule ® systems. The Company held a formal ribbon-cutting ceremony to unveil the facility on July 30, 2025. The event was attended by several Delaware elected officials and representatives from GE Vernova, Carrier, and TenX Investment. Attendees were invited to tour the facility and view AirJoule ® technology demonstrations. Balance Sheet and Liquidity Private Placement Financing: On April 25, 2025, the Company completed a previously announced $15 million private placement financing (the 'PIPE') led by GE Vernova, which also included new and existing investors. GE Vernova's participation in the PIPE followed its initial investment in AirJoule Technologies of $5 million made in March 2024 in connection with the formation of a 50/50 joint venture with AirJoule Technologies. Net proceeds from the PIPE are being used to accelerate the commercialization of the AirJoule ® A250™ and A1000™ systems to meet strong customer interest. Strong Cash Position: Ended the quarter with $30.5 million of cash and cash equivalents with sufficient runway to support the Company's operations through commercialization. Executive Commentary 'In the second quarter we made meaningful progress toward demonstrating the AirJoule ® platform's ability to use low-grade waste heat to produce pure, distilled water,' said Matt Jore, Chief Executive Officer of AirJoule Technologies. 'This is an application that we expect to be a significant driver of our future commercial sales. We also cut the ribbon on our state-of-the-art manufacturing facility, which is ready to begin assembling units for the industrial dehumidification market. Throughout 2025, we've laid the groundwork to successfully productize AirJoule ®, and I'm proud to report that we have the team, the technology and the capitalization to execute on a successful commercial launch in 2026 and unleash the power of water from air.' Quarterly Report on Form 10-Q AirJoule Technologies' condensed consolidated financial statements and related footnotes are available in its Quarterly Report on Form 10-Q for the period ended June 30, 2025, which is expected to be filed with the Securities and Exchange Commission ('SEC') on August 14, 2025. Earnings Call Webcast AirJoule Technologies will host a conference call to discuss second quarter 2025 results at 8:30 AM ET on Thursday, August 14, 2025. To access the live audio webcast of the conference call, please visit the AirJoule Technologies investor relations website at To participate by phone, dial 877-407-6184 (domestic) or +1-201-389-0877 (international). An archived webcast will be available following the call. About AirJoule Technologies Corporation AirJoule Technologies Corporation (NASDAQ: AIRJ) is a leading technology platform that unleashes the power of water from air. Through its joint venture with GE Vernova and in partnership with Carrier Global Corporation, the Company's purpose is freeing the world of its water and energy constraints by delivering groundbreaking sorption technologies. For more information, visit Forward-Looking Statements The information in this press release includes 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding AirJoule Technologies and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words 'could,' 'may,' 'will,' 'should,' 'anticipate,' 'believe,' 'intend,' 'estimate,' 'expect,' 'project,' the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, AirJoule Technologies expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. AirJoule Technologies cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond AirJoule Technologies' control. These risks include, but are not limited to, our status as an early stage Company with limited operating history, which may make it difficult to evaluate the prospects for our future viability; our initial dependence on revenue generated from a single product; significant barriers we face to deploy our technology; the dependence of our commercialization strategy on our relationships with BASF, Carrier, GE Vernova, and other third parties history of losses, and the other risks and uncertainties described in our SEC filings including the 'Risk Factors' section of our most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. AirJoule Technologies' SEC Filings are available publicly on the SEC's website at and readers are urged to carefully review and consider the various disclosures made in such filings. AIRJOULE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2025 2024 (unaudited) Assets Current assets Cash, cash equivalents and restricted cash $ 30,502,711 $ 28,021,748 Due from related party 545,013 2,820,129 Prepaid expenses and other current assets 968,892 613,754 Total current assets 32,016,616 31,455,631 Operating lease right-of-use asset 131,235 147,001 Property and equipment, net 23,872 16,373 Investment in AirJoule, LLC 343,858,688 338,178,633 Other assets 54,482 54,482 Total assets $ 376,084,893 $ 369,852,120 Liabilities and stockholders' equity Current liabilities Accounts payable $ 296,587 $ 79,202 Other accrued expenses 2,197,206 1,720,318 Operating lease liability, current 32,886 30,227 True Up Shares liability — 2,189,000 Total current liabilities 2,526,679 4,018,747 Earnout Shares liability 5,416,000 24,524,000 Subject Vesting Shares liability 1,411,000 7,819,000 Operating lease liability, non-current 107,113 124,002 Deferred tax liability 78,054,508 81,256,047 Total liabilities 87,515,300 117,741,796 Commitments and contingencies (Note 12) Stockholders' equity Preferred stock, $0.0001 par value; 25,000,000 authorized shares and 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024 $ — $ — Class A common stock, $0.0001 par value; 600,000,000 authorized shares and 60,439,593 and 55,928,661 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 6,044 5,593 Additional paid-in capital 72,644,217 53,577,270 Retained earnings 215,919,332 198,527,461 Total stockholders' equity 288,569,593 252,110,324 Total liabilities and stockholders' equity $ 376,084,893 $ 369,852,120 AIRJOULE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost and expenses: General and administrative $ 3,751,211 $ 3,211,205 $ 6,537,695 $ 4,024,444 Research and development 401,623 1,050,804 789,542 1,896,961 Sales and marketing 7,794 74,841 22,003 112,566 Transaction costs incurred in connection with business combination — — — 54,693,103 Depreciation and amortization 2,289 1,216 3,877 2,301 Loss from operations (4,162,917) (4,338,066) (7,353,117) (60,729,375) Other income (expense): Interest income 283,733 216,480 526,758 242,626 Gain on contribution to AirJoule, LLC — — — 333,500,000 Equity loss from investment in AirJoule, LLC (2,089,667) (580,788) (4,319,945) (607,170) Change in fair value of Earnout Shares liability 6,276,000 13,064,000 19,108,000 5,392,000 Change in fair value of True Up Shares liability — (136,000) 106,106 133,000 Change in fair value of Subject Vesting Shares liability 934,000 1,759,000 6,408,000 (666,000) Gain on settlement of legal fees — 2,207,445 — 2,207,445 Other expense, net (286,818) — (285,470) — Total other income, net 5,117,248 16,530,137 21,543,449 340,201,901 Income before income taxes 954,331 12,192,071 14,190,332 279,472,526 Income tax benefit (expense) 1,558,882 1,237,824 3,201,539 (84,487,339) Net income $ 2,513,213 $ 13,429,895 $ 17,391,871 $ 194,985,187 Weighted average Class A common stock outstanding, basic 59,247,717 49,560,529 57,656,530 43,357,928 Basic net income per share, Class A common stock $ 0.04 $ 0.25 $ 0.30 $ 4.05 Weighted average Class A common stock outstanding, diluted 60,179,241 51,358,716 58,727,169 44,995,234 Diluted net income, per share, Class A common stock $ 0.04 $ 0.24 $ 0.30 $ 3.92 Weighted average Class B common stock outstanding, basic and diluted — 4,759,642 — 4,759,642 Basic net income per share, Class B common stock $ — $ 0.25 $ — $ 4.05 Diluted net income per share, Class B common stock $ — $ 0.24 $ — $ 3.92 AIRJOULE TECHNOLOGIES CORPORATION Six Months Ended June 30, 2025 2024 Cash flows from operating activities Net income $ 17,391,871 $ 194,985,187 Adjustment to reconcile net income to cash used in operating activities: Depreciation and amortization 3,877 2,301 Deferred tax expense (benefit) (3,201,539) 84,487,339 Amortization of operating lease right-of-use assets 15,766 59,709 Change in fair value of Earnout Shares liability (19,108,000) (5,392,000) Change in fair value of True Up Shares liability (106,106) (133,000) Change in fair value of Subject Vesting Shares liability (6,408,000) 666,000 Change in fair value of Equity Line Obligation liability 286,819 — Gain on contribution to AirJoule, LLC — (333,500,000) Equity loss from investment in AirJoule, LLC 4,319,945 607,170 Non-cash transaction costs in connection with business combination — 53,721,000 Gain on settlement of legal fees — (2,207,445) Share-based compensation 2,419,596 150,519 Changes in operating assets and liabilities: Due from related party 2,496,577 — Due to related party — (1,440,000) Prepaid expenses and other current assets (355,138) (806,153) Operating lease liabilities (14,230) (56,818) Accounts payable 217,385 (3,157,317) Accrued expenses, accrued transaction costs and other liabilities (122,308) (5,563,053) Net cash used in operating activities (2,163,485) (17,576,561) Cash flows from investing activities Purchases of fixed assets (11,376) (6,554) Investment in AirJoule, LLC (10,000,000) (10,000,000) Net cash used in investing activities (10,011,376) (10,006,554) Cash flows from financing activities Proceeds from the exercise of warrants — 45,760 Proceeds from the exercise of options 99,718 60,170 Proceeds from the PIPE offering, net 14,556,106 — Proceeds from the issuance of common stock pursuant to subscription agreements — 61,750,000 Net cash provided by financing activities 14,655,824 61,855,930 Net increase in cash, cash equivalents and restricted cash 2,480,963 34,272,815 Cash, cash equivalents and restricted cash, beginning of period 28,021,748 375,796 Cash, cash equivalents and restricted cash, end of the period $ 30,502,711 $ 34,648,611 Supplemental non-cash investing and financing activities: Issuance of True Up Shares $ 2,082,894 $ — Deferred offering costs included in accrued expenses and other current liabilities $ 312,375 $ — Initial recognition of True Up Shares liability $ — $ 555,000 Initial recognition of Subject Vesting Shares liability $ — $ 11,792,000 Initial recognition of ROU asset and operating lease liability $ — $ 172,649 Liabilities combined in recapitalization, net $ — $ 8,680,477 Contribution to AirJoule, LLC of license to technology $ — $ 333,500,000 Supplemental cash flow information: Taxes paid $ — $ — Contacts

Intel Rises 7.9% in the Past Year: Should You Buy the Stock?
Intel Rises 7.9% in the Past Year: Should You Buy the Stock?

Globe and Mail

time5 hours ago

  • Globe and Mail

Intel Rises 7.9% in the Past Year: Should You Buy the Stock?

Intel Corporation INTC has increased 7.9% over the past year compared with the industry 's growth of 48%. It has underperformed compared to the Zacks Computer & Technology sector and the S&P 500. The company has also underperformed its competitors like Advanced Micro Devices AMD but outperformed Qualcomm Incorporated QCOM. AMD has surged 31.2%, while Qualcomm has decreased 7.3% during this period. INTC's Key Growth Drivers Intel's client computing group is benefiting from solid demand for AI PCs. AI PCs support seamless AI native software integration, optimize performance of AI native applications leveraging superior central processing unit, graphics processing unit and the new neural processing unit capabilities. Moreover, AI PC's on-device AI processing support a wide range of cutting-edge tools, simplifying workflow and boosting efficiency. Hence, organizations across industries are rushing to incorporate AI PCs across their operations to drive productivity and support highly demanding workloads. With the leading-edge AI chips offering, like Intel Core Ultra processors, Intel is well positioned to gain from this AI PC boom. The company aims to ship 100 million AI PCs powered by its chips in 2025. Intel is witnessing strong momentum in the Asia-Pacific region, where collaboration with leading manufacturers such as Lenovo, ASUS and Huawei is driving growth. Growing market traction of XEON 6 processors is a major growth driver in the Data Center and AI Group. The company recently introduced three new Xeon 6 CPUs with Performance-cores engineered to support GPU-accelerated AI systems. Intel's Xeon 6776P was selected by NVIDIA as a host processor for its cutting-edge DGX B300 system. The company is steadily advancing the development of its next-gen client computing processor, Panther Lake, built on Intel 18A. The processor is scheduled to launch in late 2025. Such development highlights Intel's growing prowess in AI and management's strong focus on innovation. This bodes well for long-term growth. Its stringent cost-cutting efficiency and strategic divestiture to optimize portfolio and business operations are commendable. The company recently divested a part of Mobileye, raising $922 million in capital, and it is also set to sell the Altera business. These initiatives will streamline operations and improve its balance sheet. Major Challenges for Intel Intel's growth prospects are impacted by intense competition from other prominent players. Growing demand for AMD's Ryzen is impacting net sales in Intel's Client Computing Group. Qualcomm has also made inroads in the AI PC space with its Snapdragon X Elite processor. This can pose a significant challenge to Intel's AI PC strategy in the near term. Its Foundry business is affected by fierce competition from TSMC. Per our estimate, Intel's client computing group is expected to generate $30.42 billion in revenues, indicating an 8.8% year-over-year decline, while revenues from the foundry business are expected to remain flat year over year. Intel generates a significant portion of its revenue from China. China accounted for more than 29% of Intel's total revenues in 2024, making it the single largest market for the company. Tariff-related uncertainties amid high geopolitical tension between the United States and China remain a major concern. The U.S. Government's new 90-day tariff truce for China may provide temporary relief, but it is to be seen whether this truce can be sustained in the long run or not. Intel is growing through a structural and operational realignment process. The high restructuring and impairment charges incurred during the process are weighing on margins. Estimate Revision Trend of INTC Earnings estimates for Intel for 2025 have moved down 48.28% to 15 cents over the past 60 days, while the same for 2026 has declined 10.53% to 68 cents. The negative estimate revision depicts bearish sentiments for the stock. Key Valuation Metric for Intel From a valuation standpoint, Intel appears to be relatively cheaper than the industry and below its mean. Going by the price/sales ratio, the company shares currently trade at 1.79 forward sales, lower than 16.28 for the industry. End Note Intel is taking various initiatives to gain a firmer footing in the expansive AI sector. Major PC OEMs, such as ASUS, Dell, HP and Lenovo, have already opted to deploy Intel AI chips. The company's XEON 6 is also gaining traction across industries. Companies like AT&T, Verizon, Samsung, and Ericsson are leveraging Xeon 6 for network transformation and AI acceleration. Growing demand for Intel AI chips bodes well for long-term growth. The company's strong focus on innovation is a tailwind. Strategic divestitures, cost-cutting initiatives to optimize its portfolio and streamline operations are positive factors. However, the company is still playing a catch-up game with AMD in the AI front. Qualcomm has also emerged as a strong player in the AI PC domain. These factors will hinder Intel's growth prospects. Downward estimate revision highlights dwindling investors' confidence. Despite growing investment in advanced chip development, regaining a competitive edge over rivals appears to be a challenging endeavor for Intel. The company currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. See our %%CTA_TEXT%% report – free today! 7 Best Stocks for the Next 30 Days Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. 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TSM's Nanosheet Roadmap Advances: Can it Maintain Tech Leadership?
TSM's Nanosheet Roadmap Advances: Can it Maintain Tech Leadership?

Globe and Mail

time6 hours ago

  • Globe and Mail

TSM's Nanosheet Roadmap Advances: Can it Maintain Tech Leadership?

Taiwan Semiconductor Manufacturing Company TSM is advancing its nanosheet chip technology roadmap with N2, N2P, A16, and A14 with the aim of improving performance and efficiency at advanced nodes. The N2 logic node is Taiwan Semiconductor's first generation of nanosheet transistor technology, offering 10-15% speed improvement at the same power, or 25-30% power reduction at the same speed, plus more than 15% chip density gain over N3E. Volume production is on track for the second half of 2025, with a ramp profile similar to N3. Moreover, Taiwan Semiconductor also expects the number of new tape-outs for N2, fueled by both smartphone and HPC applications, to be higher than both 3-nanometer and 5-nanometer in their first two years. N2P, which is an extension of Taiwan Semiconductor's N2 family, aims to deliver further performance and power benefits, and its volume production is set for the second half of 2026. A16, which is also nanosheet-based, introduces TSM's Super Power Rail technology. Compared with N2P, A16 is expected to provide 8-10% speed improvement at the same power, or 15-20% power improvement at the same speed, plus 7-10% additional chip density gain. Volume production is also targeted for the second half of 2026. Looking ahead, Taiwan Semiconductor's A14 node will feature its second-generation nanosheet transistor structure, offering a full node stride from N2. Compared with N2, A14 is expected to provide 10-15% speed improvement at the same power, or about 25-30% power improvement at the same speed, plus roughly 20% chip density gain and its volume production is scheduled for 2028. Taiwan Semiconductor also plans a Super Power Rail version of A14 for 2029. Additionally, the management believes A14 and its derivatives will further extend its technology leadership into the next decade. With fabs under construction in Taiwan and Arizona to support both N2 and A16, including fabs in Hsinchu and Kaohsiung Science Parks, and its new Arizona cluster, where about 30% of N2-and-beyond capacity will be located after completion, Taiwan Semiconductor appears well-positioned to benefit from the next wave of AI and HPC demand. How Competitors Fare Against TSM Two key competitors, Intel INTC and GlobalFoundries GFS, are working hard to catch up with TSM's lead. Intel is investing heavily in its foundry business, aiming to produce advanced chips. The company is currently focusing on its 18A process, which signifies 1.8nm chips. Intel's 18A process is claimed to have higher performance and efficiency, which will help the company better compete with Taiwan Semiconductor's upcoming N2 chips. Meanwhile, GlobalFoundries is not focused on 2nm chips. Instead, it is investing in specialized chips for cars, wireless devices, and the IoTs. While GlobalFoundries does not directly compete with Taiwan Semiconductor at the most advanced nodes, it still aims to take market share in fast-growing chip segments. TSM's Share Price Performance, Valuation and Estimates Shares of Taiwan Semiconductor have risen around 23.4% year to date compared with the Zacks Computer and Technology sector's growth of 13%. TSM YTD Price Return Performance Image Source: Zacks Investment Research From a valuation standpoint, TSM trades at a forward price-to-earnings ratio of 23.15, lower than the sector's average of 28. TSM Forward 12-Month P/S Ratio Image Source: Zacks Investment Research The Zacks Consensus Estimate for Taiwan Semiconductor's 2025 and 2026 earnings implies a year-over-year increase of 37.5% and 13.1%, respectively. Estimates for 2025 and 2026 have been revised upward in the past 30 days. Taiwan Semiconductor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. See our %%CTA_TEXT%% report – free today! 7 Best Stocks for the Next 30 Days Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report GlobalFoundries Inc. (GFS): Free Stock Analysis Report

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