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What's on the Menu at Intel's (INTC) 2016 Developer Forum?

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Tuesday saw the kickoff of the annual Intel (INTC - Free Report) Developer Forum in San Francisco, CA. The event is an occasion for the company to dazzle consumers and 6,000 developers alike with its new products and strategic plans.

Although Intel has seen difficulty in the chip market due to the major shift in consumer preference toward mobile devices, the company has plenty of new initiatives. One such market that Intel hopes to remain an integral part of is the so-called “Internet of Things” (IoT), which our team has discussed here.

IoT refers to everyday items that are connected to a network and can communicate with each other in order to streamline various activities for consumers. This new market has seen the meteoric rise of cloud computing, with recent IPOs Twilio Inc. (TWLO - Free Report) and Acacia Communications stocks soaring recently.

Let’s take a look at what Intel has planned in order to maintain its foothold as a go-to tech company in the years to come.

Virtual Reality

Intel CEO Brian Krzanich spent a solid chunk of time on day one of the conference discussing Project Alloy, the company’s virtual reality (VR) headset, which does not need a PC to function. Intel plans on making the design for the headset public by the second half of next year, and is working with Microsoft (MSFT - Free Report) to bring holographic capacity to all Windows 10 PCs within the same timeframe.

Intel already has a major role in VR headsets that work with PCs. The company’s chips are used in Facebook’s Oculus Rift and Microsoft’s HoloLens. As we have noted, the VR market is still quite new and has a massive amount of potential. Intel wants to bring itself to the forefront of this technological revolution, and Project Alloy could be its first-class ticket there.

Artificial Intelligence

Another major technological development from the turn of the 21st century is the rise of artificial intelligence (AI). The world of AI is still uncharted, and has not only technological but ethical implications as well.

In Intel’s case, we got a taste of AI through the RealSense camera, which is what powers Project Alloy as well as the company’s obstacle-avoiding drones. Intel is also offering Project Aero, a platform for consumers to create their own drones. By processing thousands of hours of visual data, these drones can be programmed to automatically fly around various obstacles.

The general mechanism behind AI is encapsulated in the way the drone operates. Essentially, machines can parse massive troves of data in order to learn and adapt to performing various tasks. Apple’s (AAPL - Free Report) Siri and other personal assistants are an example of AI, with unmanned robot arms in car factories serving as another application of the concept.

Intel calls the RealSense camera “Visual Intelligence,” which will also be used in its other major undertaking: autonomous vehicles.

Self-Driving Cars

Alphabet Inc. (GOOGL - Free Report) and Elon Musk’s Tesla (TSLA - Free Report) are key players in the push for self-driving cars, but that market is becoming more crowded with time. In late-June, Intel formed a partnership with driverless technology company Mobileye (MBLY - Free Report) and BMW (BAMXF - Free Report) to develop its own take on the self-driving car.

The idea is that the camera will allow vehicles to avoid obstacles the same way the drones can, increasing driver safety and taking another step towards bringing the concept into the market.

For more on the self-driving car market, check our team’s guide on the industry.

Bottom Line

Intel was once the leader of all things technology. It has since descended from that throne, but is slowly working its way towards regaining lost ground. There are more days ahead in the Developer Forum, so it will be interesting to see if and what other information is revealed.

Intel currently sits at a Zacks Rank #2 (Buy) due to numerous upward earnings estimate revisions for the foreseeable future. Current quarter estimates stand at $0.66 compared to the $0.64 estimate of 60 days ago, while full-year estimates are up eight cents to $2.51 per share.

Investors should keep an eye on how this storied company tries in its own way to bring the consumer into the world of tomorrow.

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