Chip stock Intel (NASDAQ:INTC) is gamely plugging along, bringing out some significant new firepower in the graphics processing unit (GPU) market. But it’s also got some debt troubles hanging over it that may prove a problem down the line. Regardless, investors aren’t particularly happy either, and Intel shares are down fractionally in Monday afternoon’s trading.
New word emerged around the Intel Arc Battlemage, and the news was looking bright indeed. The current word suggests that the BMG-G31 GPU die—a separate model in the product line—will be a fair powerhouse. This is the first time that word about the G31 version has emerged, and it’s looking pretty impressive.
Interestingly, Intel naming conventions in the past have suggested that higher numbers are actually used for lower-end processors. Thus, the G31 is likely going to prove less powerful than the earlier-noted G10 and G21 versions. Still, the G31 will likely pack a punch, with 32 Xe2 cores involved. Intel may want such a processor to better compete with Nvidia (NASDAQ:NVDA), but there’s no sign that will be the case.
Debt Troubles
However, an open letter recently spotted in the Columbus Dispatch may have some further consequences. The letter comes from VLSI Technologies CEO Michael Stolarski, who noted that Intel was about to land government payouts to the tune of around $8.5 billion, while it owes VLSI $2 billion in court-ordered payments over a patent infringement case.
Stolarski points out that the verdicts that produced those judgments were reached by two different juries, and ultimately, came about because “…the patented technology at the center of this case is valuable, and Intel has sold more than a billion products that use this technology.”
Is Intel a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on BA stock based on three Buys, 26 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 7.07% loss in its share price over the past year, the average INTC price target of $38.02 per share implies 23.36% upside potential.
