Not long ago, we heard that chip stock Intel (INTC) lost one of the biggest names it had in server chips to one of its newest rivals, Qualcomm (QCOM). But a new report suggests that this was just one more bullet in Qualcomm’s growing anti-Intel arsenal, and one that could prove a problem for Intel later on, as though it did not already have enough. Investors are optimistic, though, and sent shares up fractionally in Thursday afternoon’s trading.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Qualcomm has tried to enter the server market before, noted reports, and the result did not go so well for Qualcomm. But apparently, Qualcomm did not take its earlier failures kindly, and went after some of Intel’s leading talent in the form of Sailesh Kottapalli. Kottapalli, who had been with Intel since the 1990s, will now be leading Qualcomm’s efforts to get server products in place.
While Qualcomm’s attempts to get in on the server market failed previously with the Centriq server processor, the rise of Arm-based processors from several companies suggests more momentum in the field. That could give Intel a major new competitor at a time when that is about the last thing it needs right now. Intel, however, will not go down quietly; it already has the Granite Rapids and Sierra Forest chips, and will be putting the 18A process to work for the upcoming Clearwater Forest line.
An NPU Rising?
Meanwhile, a report from Laptop Magazine further underscored the growing rivalry between Intel and Qualcomm with a picture at an Intel event. The picture featured a stage presentation for Intel, complete with the words “21 Games did not run on Qualcomm 84-100.” In that way, Intel is working to make its Arrow Lake processor line more effective, and ultimately, give Intel back some of its edge.
The Arrow Lake launch did not go well in 2024, the report noted, and thus Intel needs the launch of the mobile version to go a lot better. And with Intel hitting the Consumer Electronics Show strong with the Ultra 200H and 200HX, there are signs that these could help bring things back for Intel. With Arrow Lake mobile chips reportedly doing well on power use, that could be just the extra help that Intel needs, especially in a mobile environment where power use is so vital.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 21 Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 56.42% loss in its share price over the past year, the average INTC price target of $24.48 per share implies 23.7% upside potential.
