Chip maker Intel (NASDAQ:INTC) notched up a little in Wednesday afternoon’s trading, making a fractional gain in share prices. Fueling that slight boost was word about an improvement in central processing unit (CPU) socketing. However, some darker issues remain lurking in the background that may prompt concern.
A familiar problem for rebuilders and modders may be about to come to an end, noted a recent report from Tom’s Hardware. Intel’s upcoming CPU socket, known as the LGA1851, will boast a feature called “Reduced Load ILM.” ILM, or Independent Loading Mechanism, is a vital component of most chips that has a direct impact on thermal performance.
Since Intel’s ILM wasn’t always the best (the report called it “notoriously bad”) and its socket was “one of Intel’s most unfriendly sockets,” it was clear something needed to be done. The altered ILM will mean less heat and better performance. While the new ILM will be an upgrade, reports note it will cost an extra $1.
Desperately Wanted: Qualcomm-Killer
Intel has recently faced a lot more competition in the field than it would likely prefer, with one of the latest entrants being Qualcomm (NASDAQ:QCOM). Formerly limited to mobile devices, Snapdragons are starting to show up even in standard PCs. That’s making Qualcomm a very serious threat to Intel.
Thus, according to ZDNet, Intel desperately needs a “Qualcomm-Killer.” Without such a device in place, the lifespan of the x86 concept just got a lot shorter. It was already somewhat threatened with the appearance of AMD (NASDAQ:AMD), and with Qualcomm joining the fray, it only gets worse.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 25 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 2.65% loss in its share price over the past year, the average INTC price target of $38.02 per share implies 21.9% upside potential.
