Some welcome news for Intel (INTC) investors. The chipmaker is working to establish some new lines of business. Specifically, it has started working with Amazon (AMZN) Web Services to help improve artificial intelligence (AI) supply chains.
The new partnership will see Intel produce a set of custom microchips, which in turn will be used to not only improve AI applications but also make the AI supply chain easier to navigate. Intel will use its 18A process node to put the chips together, and will produce new chips that not only deliver higher performance but also deliver better energy efficiency. Intel will also roll out a Xeon 6 chip specifically for Amazon Web Services.
Panther Cove Delivers an Unexpected Win
Separately, Intel’s Panther Cove is proving to be a potent powerhouse in its own right. Reports suggest that the Panther Cove line may ultimately deliver significant gains in performance, and help Intel better compete. Panther Core is delivering substantial gains in Instructions Per Clock (IPC) figures, which means tasks get done faster.
Intel is also making some major moves that should eventually payoff. Intel’s move to improve as a chip foundry, for example, may not pay off for years. But the capital outlays involved could be the start of something great.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Hold and seven Sell recommendations assigned in the past three months, as indicated by the graphic below. The average INTC price target of $25.47 per share implies 12.05% upside potential.
