Can Intel Break the Range-Barrier?

Intel (INTC) has taken a step in the right direction as the company recently detailed about its new upcoming processors based on Kaby Lake architecture that will be used in the imminent personal computers. Intel has struggled ever since the PC market started declining, but this move can help the company regain some momentum. Intel plans to irrupt into the mass production on its Kaby Lake processor line-up, as the initial Kaby Lake based processors will target notebook PCs.

The continuous decline in PC sales might be the reason why Intel is focusing on notebook PCs.
Customers are not much interested in buying PCs because they have shifted to other products like smartphone and tablets. However, the company has also made lot of investments in smartphones, but the executives detailed that smartphone market is also slowing down. Therefore, Intel is carefully and smartly making decisions about not involving much in the segment that affects the company’s profitability and margin.

Due to this, Intel is focusing on the development of comparatively high performance stand-alone modems instead of manufacturing single-chip integrated applications processors and modem for the majority of the smartphone market. Keeping in mind the poor results of Intel’s previous smartphone strategy, this strategy can be considered as a great move.

Apart from this, Intel has massive plans for high-performance computing, as its aim is re-architecting HPC with the help of its scalable system framework, which is an advanced HPC design grounded on its omni-path architecture. Intel has formerly started shipping omni-path architecture.

However, the primary motive of Intel was to develop exascale technology within 2018. To achieve that goal, the company also acquired QLogic’s InfiniBand product line four years before. Though exascale is facing some extensive problems regarding power efficiency and programmability, the exascale launch has been delayed beyond 2020.

However, the company has made a robust vow to develop exascale technology by means of exploiting its scalable system framework tactic. Moreover, Intel’s acquisition of Altera could prove to be a substantial move for the exascale operation. As a result, the company’s steps in the direction of exascale computing will reveal new chip technologies.

Conclusion

Intel looks like a good turnaround play right now. As mentioned above, Intel has taken a step in the right direction, and apart from that, the company also has a good dividend yield. For investors who like to catch falling knives, Intel is probably the safest option in the market.
Published on Jun 8, 2016
By Vinay Singh

Copyrighted 2016. Content published with author's permission.

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