We all knew that Intel (INTC) has been on the ropes these days. But this chip stock is not taking the situation lying down. In fact, it is turning to a close competitor in a bid to help turn things around and will be working on a project with none other than fellow chip stock AMD (AMD). Intel investors could not stomach the betrayal and sent shares down nearly 3% in Tuesday afternoon’s trading.
The new group effort will not result in any new processors, at least not right away. But what it will do, reports note, is help ensure that software that works on one set of chips will work on the other company’s set of chips. Intel is basically the force behind most commercial processors these days, having invented what is known as the x86 architecture. AMD licenses that architecture for its own chips.
However, the rise of ARM Holdings (ARM) makes it all the more important that Intel and AMD chips work interoperably. That led to the duo forming an “advisory group” to help software makers ensure that software for one set of processors will be necessarily adjusted to work on the other set as well. This should keep x86 processors—and Intel and AMD, by extension—viable in the field.
A New Small Business Focus
Moreover, Intel will be putting a new focus on small business users, especially those who want to put artificial intelligence (AI) to use. Known as the AI PC SMB App Pack, this alphabet soup application will provide artificial intelligence (AI) tools for personal computers (PC) for small and medium-sized businesses (SMBs).
The tools included in the pack feature Generate for AI processing, Laplink PC Mover Business to make it easier to swap out PCs, and CrowdStrike Falcon Go, which will make cybersecurity a little easier to manage thanks to some AI-assisted tools. This is also just a part of the larger AI PC Acceleration Program Intel runs, which helps bring more AI tools to everyday users.
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 seven Sells assigned in the past three months, as indicated by the graphic below. After a 36.51% loss in its share price over the past year, the average INTC price target of $25.38 per share implies 11.34% upside potential.
