Not long ago, we heard about chip stock Intel (INTC) and its new tool, the Intel Binary Optimization Tool (IBOT). Recently, a report emerged that took the IBOT for a test drive, and the results did not exactly inspire confidence. Indeed, investors do not seem nearly as confident in Intel as they once were, as shares were down nearly 5% in Monday afternoon’s trading.
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New trading tool for AMZN bullsThe IBOT was a great idea, on the surface. Games are typically optimized for one kind of processor or another, whether it be an Intel processor, a competitor’s processor, or a console processor. And the IBOT allowed any game to behave as if it were optimized for an Intel processor, no matter what processor it was actually optimized for.
But when the report tested it out, only some games performed noticeably better for using IBOT. Shadow of the Tomb Raider delivered some impressive results, with average performance up 7.5%. However, when tested with Cyberpunk 2077, the improvement was technically present, but so narrow as to be almost imperceptible. Hitman 3 could deliver only a 1.2% advantage with IBOT in place. And with Far Cry 6, the game actually performed better without IBOT running. The difference was about 2%, but for a system that was supposed to make gaming better, it does surprisingly little.
Price Hikes Already Kicked In
For those who were hoping to land some of the new Arrow Lake Refresh processors, there is further bad news afoot. Price hikes have already kicked in despite the processors only being available for the last four days, reports note.
Originally, Intel pitched the Core Ultra 5 250K Plus chip at $199. Current pricing, meanwhile, is closer to $249 in some places. But this is a comparative bargain compared to the Core Ultra 7 270K Plus, as it was supposed to retail at $299, but already hit $357 on Amazon (AMZN) at one point. The cause seems to be the growing demand for chips in artificial intelligence (AI) infrastructure, as well as data center construction.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on seven Buys, 22 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After an 89.92% rally in its share price over the past year, the average INTC price target of $47.97 per share implies 16.97% upside potential.
