There are those who believe that chip maker Intel (NASDAQ:INTC) will have a tough time competing going forward against powerhouses like Nvidia (NASDAQ:NVDA). However, Intel has a new plan that may give it an edge in a whole new sector. But that wasn’t welcome news enough for investors, who sent shares down over 2% in Wednesday afternoon’s trading. A recent interview with Intel vice president Pallavi Mahajan took a look at what Intel is doing in the field of Edge computing.
For those not familiar with the term, “Edge computing” is basically exactly what the name suggests: a kind of information technology architecture where much of the work is done on the outer edge, the periphery, of the network, and attempts to keep the processing as local to the point of the data’s origin as possible.
But computing like that requires different systems that handle unique processes, and that’s where Intel’s plans come in – to supply the best things for Edge computing, including sensors and Internet of Things (IoT) devices that gather the data that needs to be processed nearby.
But What About Today?
Intel’s push into Edge computing is a big step, but it’s also the kind of thing that will take a while to reach its fullest fruition. What about today? Intel is working on that, too; it’s currently working with Lockheed Martin (NYSE:LMT) to bring in microchip installation procedures at Lockheed Martin’s Owego helicopter construction plant. Yet, there are some distressing signs ahead for Intel; while its new versions of x86 chips promise high-end performance, its work to build the next chips for Nvidia is potentially cannibalizing its own market.
Is Intel a Buy, Hold, or Sell?
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 2.62% rally in its share price over the past year, the average INTC price target of $37.87 per share implies 24.65% upside potential.
