Invest in Intel ($INTC) now? Read & decide.
$Intel(INTC)$ stock price has been rising steadily for the past month despite US market jittery performances (see below).
It stock price has gained +4.57% based on past one month’s performance. (see above)
In September 2023, Intel managed to rally for 10 consecutive days.(see below)
It is Intel’s “longest” rally in a very long time.
The last time Intel rallied was in 2005, 18 years ago.
Is Intel’s Stock Price Rise, A Fluke Chance?
In the past few months, there has been a lot of media coverage on the company and its semiconductor chips lately?
On 29 Aug 2023, Intel announced its new chip - "Sierra Forest".
The chip is designed specifically for Data Centre.
It is scheduled for 2024 release.
The “Sierra Forest” a star chip because for the same power consumed, it has more than double the efficiency when compared to other microchips,
“Sierra Forest” is the “green” chip that industry has been pushing for, making it
More economical.
Environmentally friendly.
On 31 Aug 2023, at Deutsche Bank investment conference, Intel CEO - Pat Gelsinger mentioned that its Q3 revenue is already hitting above 50% of its forecast, that is between $12.9 Billion & $13.9 Billion.
On 26 Oct 2023, Intel’s reported Q3 2023’s revenue: came in at $14.16 Billion; beating market expectations of $13.53 Billion.
On growing concerns over competitor $NVIDIA Corp(NVDA)$ GPUs for AI applications might reduce demand for Intel’s GPU, Mr Gelsinger said that Intel will compete head-on and believes the AI trend will “create opportunities” for Intel’s CPU chips as well.
Without revealing too much, Mr Gelsinger confirmed that Intel has an order for its to be manufactured 1.8nm chip.
On 01 Sep 2023, there was a “technical” post on Intel ‘s AI chip (Gaudi 2) and its performance benchmarking against $NVIDIA Corp(NVDA)$ AI-chip, H100. (see above)
Nvidia's latest data center GPU is the undisputed AI accelerators currently after undergoing a series of Industry standards workload tests.
Benchmarking covers a variety of tests including:
Image classification.
Natural language processing.
Large language models (LLM).
As expected, Nvidia’s H100 came up tops.
However, there was one test where Gaudi2 outperformed Nvidia’s H100.
It was fine-tuning BridgeTower, a vision-language model that processes both images and natural language.
Intel's Gaudi 2 chip has decoders (hardware), that allows the chip to offload some processings from CPU, resulting in better performance.
The test was conducted by Hugging Face is a platform where the machine learning community collaborates on models, datasets, and applications.
Nvidia is not the king of every AI hill.
Hugging Face found “distributed” processing design in Gaudi 2 enabled it to outperform the H100 by 41%.
Gaudi 2 was also 2.5 times faster than Nvidia's last-gen A100 GPU.
When performance-per-dollar is further factored in, Intel’s Gaudi 2 a compelling alternative.
In Q2 2023, Intel has seen its AI accelerator demand increased by 6 times, driven by interest in Gaudi 2 chip.
Intel’s manufacturing plant is also undergoing a major transformation, positioning itself for the coming years.
Software-defined networking (SDN) technologies have been used in data centers mainly.
With Intel, it is no longer true.
The chip maker has opted to implement SDN in its chip manufacturing plant to enjoy the following benefits - scalability, availability, and security.
Besides zero downtime, moving to Cisco’s Application Centric Infrastructure (ACI) allowed Intel to:
Solve increasingly complex security challenges.
Minimize ongoing threats.
Prevent software vulnerabilities.
The technologically advanced implementation also enabled Intel to perform network deployments faster and with 85% less manpower.
To date, Intel has deployed SDN in roughly 15% of its factories. It will continue to migrate existing Ethernet-based factories to SDN.
For being innovative, Intel has won the 2023 US CIO 100 Award for IT innovation and leadership.
To keep its next generation “Meteor Lake” chips competitive, Intel actually contracted TSMC to fabricate parts of it, while it fabricates the CPU tile using its ‘Intel 4’ node (7 nm).
At Deutsche Bank’s 2023 Technology Conference, CEO Gelsinger declared that Intel is on track with its manufacturing roadmap of 5 nodes in 4 years.
Intel is confident that it will regain leadership in 2025 with the 18A node (1.8nm).
My Personal View on Intel:
Intel has a suite of chips to cater to different business requirements eg. data centre, AI related applications etc...
Even while playing catch up, Intel’s Gaudi 2 chip is able to compete against Nvidia’s.
Intel’s chips are cost-effective, striking a balance between performance & costs of doing business.
By transforming into a technologically advanced manufacture plant, Intel will gain advantages in (a) deployment efficiency, (b) security, and (c) reduced human interventions, at the same time.
In the long run, the technology advantage will help to keep costs low, further elevating the costs advantage.
This veteran is working very hard, not only to keep pace with its competitors like Nvidia, $Advanced Micro Devices(AMD)$, $Broadcom(AVGO)$ but also to carve out a path of its own.
When Intel’s plan materializes, bit by bit, culminating in 2025 as planned, Intel will back.
Do you think Intel will be able to get back into the AI-chip race by 2025 as planned?
Do you think other semiconductor companies will be able to catch up with Nvidia?
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$英特尔(INTC)$ this should be a $400 billion company. What anchor is holding it back?
1 decade back intel and microsoft and google were trading at almost same price ...today microsot in 10x bigger price than intel ..poor intel .
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2 days in a row with 52 weeks higher close. 1.49% to hit 40. Just 4% to 41....data speak!
INTC director buys $ 2.5 mil dollars of the stock on the open market....
Looks like some institution is loading up.
Hi