Are machines really intelligent

Are machines really intelligent? or is it true that intelligence is thurst
upon them? Is the whole field of AI a facade?these are the questions that
haunt me now.
machines never seem to really understand what they do. even when
displaying the picture of the most beautiful thing in the world,they are
dealing with 0s and 1's,and have no sense of beauty. every thing is just
0s and 1's so how can one say that these creatures are intelligent? I
think they can at most be called virtually intelligent, In reality they
are not intelligent!!