We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Intel Cash in on Getac's F120 Launch to Scale AI-Enhanced Tasks?
Read MoreHide Full Article
Key Takeaways
Getac's new F120 tablet runs on Intel's AI Boost NPU and Core Ultra 200V Series processor.
Intel faces margin strain from higher wafer costs, unused capacity and product mix.
China's push for local chips threatens Intel's largest revenue market at 29% share.
Intel Corporation (INTC - Free Report) recently announced that its AI Boost NPU and Intel Core Ultra 200V Series Processor will power the world’s first fully rugged Copilot+PC in tablet form. Dubbed F120, this state-of-the-art tablet is manufactured by Getac Technology Corporation, a leading provider of rugged computing and mobile video solutions. Designed to harness AI (artificial intelligence) capabilities in complex and challenging environments across the defense, utilities, manufacturing and automotive industries, the F120 boasts seamless multitasking prowess, courtesy of Intel’s NPU and processor support.
INTC Focusing on AI Chips
The increased adoption of Intel processors and NPUs follows the positive feedback of Xeon 6 processors with Performance-cores (P-Cores). This system-on-chip (SoC) has been designed to meet the huge demand for high AI workloads across various sectors. With industry-leading performance across data center workloads and up to two times higher performance in AI processing, the Xeon 6 family delivers the industry’s best central processing unit (CPU) for AI at a lower total cost of ownership (TCO).
Intel Xeon platforms have reportedly set the benchmark in 5G cloud-native core with substantial performance and power-efficiency improvements, additional power-saving capabilities and easy-to-deploy software. This has triggered healthy demand trends from major telecom equipment manufacturers and independent software vendors to optimize and unleash proven power savings for a more sustainable future.
Intel has also partnered with Exostellar to make enterprise-grade AI infrastructure accessible in a cost-effective manner. Intel’s partnership with this leading innovator in autonomous compute orchestration and cloud optimization, which leverages AI and ML technologies, is likely to deliver an end-to-end solution with support for quota enforcement, dynamic borrowing, fair queuing and priority-based scheduling. This, in turn, will bring cloud-like agility and efficiency to on-premises or hybrid infrastructure for a more competitive AI hardware ecosystem.
Price Performance
With healthy AI chip traction, Intel has gained 24.6% in the past year compared with the industry’s growth of 54.5%, lagging NVIDIACorporation (NVDA - Free Report) but outperforming Advanced Micro Devices, Inc. (AMD - Free Report) . While Advanced Micro has gained 15.2%, NVIDIA is up 60.8% over this period.
One-Year INTC Stock Price Performance
Image Source: Zacks Investment Research
Estimate Revision Trend of INTC
Earnings estimates for Intel for 2025 have moved down 87.2% to 14 cents over the past year, while the same for 2026 has declined 64.6% to 68 cents. The negative estimate revision depicts bearish sentiments for the stock.
Image Source: Zacks Investment Research
INTC Plagued by Margin Woes
Although Intel has scaled its AI footprint, it seems to lag NVIDIA on the innovation front, with the latter’s H100 and Blackwell GPUs being runaway successes. Leading technology companies are reportedly piling up NVIDIA’s GPUs to build clusters of computers for their AI work, leading to exponential revenue growth.
An accelerated ramp-up of AI PCs further affected the short-term margins of Intel as it shifted production to its high-volume facility in Ireland, where wafer costs are typically higher. Margins were also adversely impacted by higher charges related to non-core businesses, charges associated with unused capacity and an unfavorable product mix.
Image Source: Zacks Investment Research
Bitter China Trade Ties Hurt INTC
China accounted for more than 29% of Intel's total revenues in 2024, making it the single largest market for the company. However, the communist nation's purported move to replace U.S.-made chips with domestic alternatives significantly affected INTC’s revenue prospects. The directive to phase out foreign chips from key telecom networks by 2027 underscores Beijing's accelerating efforts to reduce reliance on Western technology amid escalating U.S.-China tensions.
Moreover, weaker spending across consumer and enterprise markets, especially in China, resulted in elevated customer inventory levels, resulting in soft demand trends. Strict export control measures are likely to affect the market dynamics further, leading to below-par revenue growth in the near term.
End Note
Intel has been facing challenges due to the disruptive rise of over-the-top service providers in this dynamic industry. Price-sensitive competition for customer retention in the core business is expected to intensify in the coming days. Aggressive competition is likely to limit the ability to attract and retain customers and affect operating and financial results.
The road ahead for Intel is bumpy and strewn with daunting challenges, and how it navigates these roadblocks in the coming days remains to be seen. Intel carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Can Intel Cash in on Getac's F120 Launch to Scale AI-Enhanced Tasks?
Key Takeaways
Intel Corporation (INTC - Free Report) recently announced that its AI Boost NPU and Intel Core Ultra 200V Series Processor will power the world’s first fully rugged Copilot+PC in tablet form. Dubbed F120, this state-of-the-art tablet is manufactured by Getac Technology Corporation, a leading provider of rugged computing and mobile video solutions. Designed to harness AI (artificial intelligence) capabilities in complex and challenging environments across the defense, utilities, manufacturing and automotive industries, the F120 boasts seamless multitasking prowess, courtesy of Intel’s NPU and processor support.
INTC Focusing on AI Chips
The increased adoption of Intel processors and NPUs follows the positive feedback of Xeon 6 processors with Performance-cores (P-Cores). This system-on-chip (SoC) has been designed to meet the huge demand for high AI workloads across various sectors. With industry-leading performance across data center workloads and up to two times higher performance in AI processing, the Xeon 6 family delivers the industry’s best central processing unit (CPU) for AI at a lower total cost of ownership (TCO).
Intel Xeon platforms have reportedly set the benchmark in 5G cloud-native core with substantial performance and power-efficiency improvements, additional power-saving capabilities and easy-to-deploy software. This has triggered healthy demand trends from major telecom equipment manufacturers and independent software vendors to optimize and unleash proven power savings for a more sustainable future.
Intel has also partnered with Exostellar to make enterprise-grade AI infrastructure accessible in a cost-effective manner. Intel’s partnership with this leading innovator in autonomous compute orchestration and cloud optimization, which leverages AI and ML technologies, is likely to deliver an end-to-end solution with support for quota enforcement, dynamic borrowing, fair queuing and priority-based scheduling. This, in turn, will bring cloud-like agility and efficiency to on-premises or hybrid infrastructure for a more competitive AI hardware ecosystem.
Price Performance
With healthy AI chip traction, Intel has gained 24.6% in the past year compared with the industry’s growth of 54.5%, lagging NVIDIA Corporation (NVDA - Free Report) but outperforming Advanced Micro Devices, Inc. (AMD - Free Report) . While Advanced Micro has gained 15.2%, NVIDIA is up 60.8% over this period.
One-Year INTC Stock Price Performance
Image Source: Zacks Investment Research
Estimate Revision Trend of INTC
Earnings estimates for Intel for 2025 have moved down 87.2% to 14 cents over the past year, while the same for 2026 has declined 64.6% to 68 cents. The negative estimate revision depicts bearish sentiments for the stock.
Image Source: Zacks Investment Research
INTC Plagued by Margin Woes
Although Intel has scaled its AI footprint, it seems to lag NVIDIA on the innovation front, with the latter’s H100 and Blackwell GPUs being runaway successes. Leading technology companies are reportedly piling up NVIDIA’s GPUs to build clusters of computers for their AI work, leading to exponential revenue growth.
An accelerated ramp-up of AI PCs further affected the short-term margins of Intel as it shifted production to its high-volume facility in Ireland, where wafer costs are typically higher. Margins were also adversely impacted by higher charges related to non-core businesses, charges associated with unused capacity and an unfavorable product mix.
Image Source: Zacks Investment Research
Bitter China Trade Ties Hurt INTC
China accounted for more than 29% of Intel's total revenues in 2024, making it the single largest market for the company. However, the communist nation's purported move to replace U.S.-made chips with domestic alternatives significantly affected INTC’s revenue prospects. The directive to phase out foreign chips from key telecom networks by 2027 underscores Beijing's accelerating efforts to reduce reliance on Western technology amid escalating U.S.-China tensions.
Moreover, weaker spending across consumer and enterprise markets, especially in China, resulted in elevated customer inventory levels, resulting in soft demand trends. Strict export control measures are likely to affect the market dynamics further, leading to below-par revenue growth in the near term.
End Note
Intel has been facing challenges due to the disruptive rise of over-the-top service providers in this dynamic industry. Price-sensitive competition for customer retention in the core business is expected to intensify in the coming days. Aggressive competition is likely to limit the ability to attract and retain customers and affect operating and financial results.
The road ahead for Intel is bumpy and strewn with daunting challenges, and how it navigates these roadblocks in the coming days remains to be seen. Intel carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.