Intel Stock (NASDAQ:INTC) Slips as AMD Steps Up at Computex

Chip stock Intel (INTC) has lost a lot of ground to one of its biggest rivals, Nvidia (NVDA) of late, but there are some signs that that may be turning around. In fact, Intel is now about to be a big part of Nvidia’s own product line, reports note, and that should give the stock some new edge. Intel stock actually budged up fractionally in Thursday afternoon’s trading.

The new reports noted that three of Intel’s new Xeon 6 central processing units (CPUs) are going to be part of Nvidia’s DGX B300 servers. With these slots secured, it will be Intel processors that give Nvidia their ability to “host and orchestrate AI workloads.” The Xeon 6 processors come complete with what is known as “Priority Core Turbo” technology, which increases the frequencies on so-called “high-priority cores.”

This will also go quite a way toward giving Intel more of a presence in the AI infrastructure market, reports note. Since the processors are offering 30% faster memory speeds that what is commonly available, that likely turned Nvidia’s head in Intel’s direction. And with as many as 128 cores available, plus a better way to organize them, it should make for a powerhouse combination in AI environments that require a lot of graphics processing unit (GPU) firepower.

A Computex Post-Mortem

We remember that Intel was at the Computex show just recently, and it made quite an impact while it was there. Reports note that Intel had an unusually subdued display, with CEO Lip-Bu Tan putting on a particular clinic when it came to understated humility.

A major keynote speech sought to endear the crowd to Intel’s heritage, as well as Tan’s own, as he noted “Taiwan is not just a special place for me personally. It is the undisputed global hub for semiconductor innovation and a cornerstone of the world’s technology supply chain.” He then launched into an extended presentation of how Intel looks to work “hand-in-glove” with its supply chain to help it rebuild back to its former prominence.

Is Intel a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 31.22% loss in its share price over the past year, the average INTC price target of $21.29 per share implies 2.7% upside potential.

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