Intel (INTC - Free Report) recently made a slew of announcements at COMPUTEX 2019. The chief attraction of the event was demonstration of the much-awaited 10th generation core processor (dubbed “Ice Lake”) by Gregory Bryant from the company’s Client Computing Group (CCG).
The latest processors feature up to 8 threads, 4 cores offering clock frequency of up to 4.1GHz. The CPUs are developed on the company’s 10 nm process technology based on Sunny Cove architecture.
The company announced that the processors are now shipping and scheduled to be available in holiday season of 2019. However, pricing of the latest chip remains undisclosed.
Further, the CPUs are powered with robust Iris Plus graphics, with an aim to provide immersive visual experience to user with graphics frequency of up to 1.1 GHz. In a bid to provide seamless connectivity, the latest processors are integrated with Intel Wi-Fi 6 and Thunderbolt 3.
The new CPUs leverage Intel Deep Learning Boost to enhance AI performance on the laptop by up to 2.5X primarily for lower latency workloads.
Other Noteworthy Announcements
Intel upped the ante in PC gaming by unveiling 9th Gen Intel Core i9-9900KS processor which offers 5 GHz clock frequency on all cores. The company claims it is the “world’s best gaming desktop processor” on the basis of median frames per second (FPS) count tested on comparable processors. It is slated to be available by holiday season of 2019.
The company also showcased Intel Performance Maximizer “overclocking tool” to enhance performance and provide better experience.
Intel rolled out 14 new 9th Gen Intel Core vPro mobile and desktop processors featuring up to 8 cores, 16 threads offering clock frequency of around 4.8 GHz on mobile and 5 GHz on desktop.
Intel also introduced 14 new Xeon E processors that feature up to 16 threads, 8 cores, and offer 5 GHz turbo frequency. Further, Xeon E processors are integrated with Intel Optane Memory H10 and Wi-Fi 6.
Additionally, Intel noted progress in Project Athena. The company aims to enable advanced laptops to utilize robust technologies including 5G and AI through this project. The chipmaker anticipates shipping the first series of Project Athena devices by the second half of 2019.
Portfolio Expansion Holds Promise
The new 10th Gen CPUs are powered with robust performance features, enhancing productivity of mainstream laptops. The emergence of high-end cloud computing, thinner laptops, and demand for fast processing is expected to bode well for the newly introduced CPUs.
Per a Credence Research report, global 2 in 1 laptop market is envisioned to hit approximately $15.38 billion by 2026. Further, according to a GrandViewResearch report, global laptop market is projected to hit $108.91 billion by 2025, with 2 in 1 laptops witnessing highest CAGR.
Intel’s dominance in CPU market is anticipated to improve with the new processors for sleek laptops. The new CPUs are likely to pave the way for ultra-thin PCs.
We believe the new CPUs will expand the company’s customer base going ahead, consequently, bolstering CCG revenues. In the last reported quarter, CCG revenues improved 4.5% on a year-over-year basis to reach $8.586 billion and accounted for 53.5% of total revenues.
Competition a Woe
Stiff competition from AMD (AMD - Free Report) in the CPU market remains a concern for Intel.
At COMPUTEX, AMD unveiled Ryzen Threadripper 9 3900X processor which features 24 threads and 12 cores. The chip, expected to be available in early July of 2019, is priced at $499, almost 58% lower than Intel’s Core i9 9920X costing around $1,189.
Zacks Rank & Key Picks
Intel carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Computer & Technology sector include Cirrus Logic, Inc. (CRUS - Free Report) and Cadence Design System (CDNS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Cirrus Logic and Cadence is pegged at 15% and 11%, respectively.
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