Should You Bet on Intel's Turnaround?

Intel (INTC) has been struggling recently due to the slowdown in the PC market and the stock was down 7% year to date in 2015. 2016 has been no different for Intel as it is already down about 13% for the year. However, I think investors shouldn’t lose hope and I believe Intel can stage a turnaround due to various reasons mentioned below.

Xeon D-1587 specifications

Presently, public expectations regarding ARM server solutions are moderately high mainly due to the recent contracts among the Chinese regional government and Qualcomm, as well as other trifling Chinese agreements, not to tribute the good performance in the smartphone segment.

On the other hand, Advanced Micro Devices’ Opteron A1100 series failed to meet public expectation, and the other ARM rivals are still comparatively lagging behind in progress.
Therefore, Intel has decided to severely focus on Xeon D series which offers an amazing performance per watt. It will not be easy for the company to grasp a strong hold on ARM market, as it may be able to control only small markets where Intel Atom 2000 series is still the most viable solution.

However, if the company successfully manages to provide a sturdy performance, it will be able to accelerate in other divisions such as HPC, virtualization, interconnections, and SSD, producing more profits in the forthcoming years.

Intel’s Xeon D delivers 16 cores with 32-logic threads, grounded on Broadwell architecture comprising a 65W TDP, 24 MB of cache and a 1.7 GHz base clock. It has the capability to support VT-d/VT-x virtualization technology, full TXT and RAS, TSX instructions, and AVX2. Xeon also contain a dual memory with maximum 128 GB DDR4, ECC or non-ECC, four USB 3.0 as well as USB 2.0 ports, and six SATA 3.0 ports.

Xeon contains a Broadwell chip together with full instruction support, but its comparatively low clock speed together with high core count as well as 14 nm process nodes implementation makes its really exciting. Xeon has CPU architecture with 16 cores, 65W TDP and low frequency which will offer a superior power efficiency in extremely multi-threaded applications.

In the case of Xeon, the Broadwell architecture and 14 nm process nodes plays a vital role, as they are intended to enhance efficiency in the low-power section. I think all the bad news is already priced in Intel’s stock and Xeon can help Intel regain some of its mojo. Hence, I won’t rule out a turnaround for Intel just yet.
Published on Feb 29, 2016
By Akshansh Gandhi

Copyrighted 2020. Content published with author's permission.

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