While the export restrictions to China may be cutting into many chip stocks‘ profits, Intel (NASDAQ:INTC) has managed to figure out one way to win here: lower-powered chips for handheld gaming PCs. One such entrant, the Weibu GP10, recently made an appearance, and that helped Intel gain fractionally in Monday afternoon’s trading.
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The GP10 isn’t exactly a big deal by itself. Shenzhen Weibu isn’t a big player in the space, so its handheld device has something of a limited draw to it. However, if the GP10 proves any kind of success, Intel may be able to leverage that into a major new advance as others try to enter the field and find themselves in need of import-friendly chips to power the devices. The Lunar Lake chips that are going into these devices are proving a match for the AMD (NASDAQ:AMD) Ryzen Z1 chips that are currently driving the market right now.
Data Center Expansions
Meanwhile, Intel also brought out data about its replacement for the Ponte Vecchio data center graphics processing unit (GPU). Dubbed the “Falcon Shores,” it’s set to arrive in 2025, and it’s going to need some serious kilowatt-hours to back it up. Why? Because the Falcon Shores processor runs at 1,500 watts. That’s going to make it one of the biggest power-hungry chips on the planet right now, and might make it a tough sell to data centers looking for upgrades.
That’s especially true, given how many different data center chips there are already. With data centers a frequent target for the E in ESG investing, buying in on a high-powered chip may not be a priority.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 26 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 7.17% rally in its share price over the past year, the average INTC price target of $37.87 per share implies 18.2% upside potential.
Is INTC the Right Stock to Buy for Passive Income?
Before you hurry to invest in INTC, think about the following:
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