So while last week was not great for chip stock Intel (INTC), this week started off with a bang. New word emerged about the Core Ultra 9 line, and how one of its processors is delivering exciting specs. That proved welcome enough for investors, who sent Intel on a rocket into the sun, up over 6% in Monday afternoon’s trading.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
So word emerged about the Core Ultra 9 290K Plus processor, and as it turns out, it delivers some exciting results when compared against the Ultra 9 285K. It turns out—based on the leaked reports—that the 290K is as much as 11% faster than the 285K, which is a good sign given that the 290K Plus is set to be the line’s flagship model.
Interestingly, there are not many changes forecast for the 290K, as reports suggest it will have the same combination of 24 cores and 24 threads. However, early word looks for better clock speeds and better thermal design power (TDP) as well. Performance testing gave the 290K a score of 3,535 in single-thread testing, and 25,106 in multi-core tests. That’s up 11% against the 285K in multi-core, and up 10% against the 285K in single-core as well, which is a good sign going into the processor’s release. And, just to top things off, a test against AMD’s (AMD) Ryzen 9 9950X3D put the 290K up 4% in single-core and a whopping 13% in multi-core.
A Return to DRAM?
Better yet, Intel may also be making a return to the DRAM market, based on reports that it is getting together with SoftBank (SFTBY) on a 10 billion yen (about $64.25 million USD) joint venture known as Saimemory. The Saimemory project is designed to develop a “…low-cost, low-power alternative to the dominant High Bandwidth Memory (HBM) used in AI processors.”
If this actually works, it could be a serious coup for both Intel and SoftBank. After all, the DRAM market is currently set to hit $150 billion by 2029. Plus, DRAM is also a major part of the artificial intelligence (AI) infrastructure. If Intel can get out ahead of a market about to enter a supercycle, the potential win could be dizzying in scope.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on seven Buys, 20 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 139.78% rally in its share price over the past year, the average INTC price target of $48.19 per share implies 1.8% downside risk.
