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Intel's (INTC) New Chips to Boost Efficiency Amid Remote Work

Zacks Equity Research
·3-min read

Intel INTC recently introduced 10th Gen Core vPro mobile and desktop PC processors to boost business productivity with improved connectivity and security features in the wake of work-from-home setting.

The new processors are designed with an aim to augment computing innovation with advanced remote manageability capabilities.

Systems featuring the new 10th Gen Intel Core vPro mobile and desktop processors are anticipated to be available in the upcoming months. Notable PC makers including, HP, Dell and Lenovo LNVGY, have adopted the chipmaker’s10th gen vPro processors. In fact, Lenovo recently unveiled professional-level ThinkPad P-14 and P-15 laptops and desktops with the latest processors.

Growing clout of Intel’s latest processors bodes well for its topline.This, in turn,is expected to instill investor confidence in the stock in the days ahead. Notably, shares of Intel have declined 2.7% year to date, against the industry’s rise of 6.8%.



Advanced Features at a Glance

In a bid to deliver professional-level performance, Intel Xeon W-1200 processors feature up to 10 cores and 20 threads. The processors also support Intel’s Hyper-Threading, Thunderbolt 3 and Optane technologies.

Further, integrated Wi-Fi 6 (Gig+) connectivity provides the users with advanced video conferencing capabilities. Moreover, Intel’s Hardware Shield security support with advanced threat detection features aids users to safeguard critical data against cyber-attacks.

Key Takeaways

Coronavirus-induced lockdowns have triggered a work-from-home wave and led to a spike in demand for advanced high-computing performance laptops among professionals. This bodes well for the chipmaker’s latest offering.

We believe that the emergence of high-end cloud computing, thinner laptops, and demand for fast data processing favors growth prospects for the newly introduced processors.

Markedly, increasing adoption of AI techniques and ML tools and initiatives to boost workplace productivity are primarily responsible for driving high-end desktops and laptops processors.

We believe product innovation and roll out of processors utilizing latest technologies will help Intel generate incremental revenues in the quarters ahead.

Notably, per a survey by Gartner, in the wake of coronavirus crisis led recession and business impacts, 74% of polled CFOs and finance leaders, intend to shift “at least 5% of their previously on-site workforce to permanently remote positions post-COVID 19.” This is likely to create more demand for relevant office equipment and is encouraging for Intel’s new processors.

Nevertheless, stiff competition from Advanced Micro Devices AMD is likely to lead to pricing pressure and limit margin expansion at least in the near term. Markedly, AMD is currently leveraging Taiwan Semiconductor Manufacturing Company’s TSM 7 nanometer (nm) process technology, which is enabling it to deliver its advanced 7 nm chips faster to market.

Further, AMD aims to deliver “Zen 4” core architecture, which is “currently in design” utilizing advanced 5 nm process technology. This is a major concern for Intel, which is yet to deliver 7 nm chips.

Zacks Rank

Intel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Intel Corporation (INTC) : Free Stock Analysis Report
 
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