Intel (NASDAQ:INTC) Unveils New Microchips at Developer Conference – TipRanks.com

Intel (INTC) has unveiled a new series of microchips at a developer conference as it tries to gain ground on rival chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD).

Specifically, Intel debuted new Xeon 6 and Gaudi 3 microchips that are designed for use with artificial intelligence (AI) applications and promise to be more powerful while consuming less energy than previous processors. Both chips are designed to run AI applications through data centers. The new chips are scheduled to hit the market in mid-2025, said Intel.

Can Intel Get Its Groove Back?

Intel has struggled with a plan to shift its operations to not only designing microchips but also manufacturing them for itself and other companies. The pivot to becoming a microchip foundry has cost Intel more than $50 billion and hurt is financial results.

After a disappointing print in August of this year, Intel announced plans to layoff 15% of its workforce and suspend its dividend payment to shareholders. Analysts say the bigger issue is that Intel has fallen behind in the red hot market for AI microchips and processors, something the company sought to address at the developer conference.

Rumors are also circulating that Intel might be a take over target, and the company has said it is considering eventually spinning off its foundry business. All the drama has sent INTC stock down 55% this year, making it one of the worst performers in the benchmark S&P 500 index.

Is Intel Stock a Buy?

Wall Street analysts have a consensus Hold rating on INTC stock based on one Buy, 26 Hold and seven Sell ratings assigned in the past three months. The average INTC price target of $25.47 implies 35.9% upside potential.

See more INTC analyst ratings

Disclosure