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Intel (INTC) Forays Into GPU Arena With New Xe DG1 Card

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Intel (INTC - Free Report) has reportedly unveiled its new graphics card — Xe DG1 — at the recently held CES event in Las Vegas. According to Forbes, the new GPU will be a part of the company’s mobile and desktop graphics futures.

However, the company has not provided details regarding performance targets or specifications of the card. Nevertheless, it stated that the DG1 will likely support gaming at 1080p resolution.

Moreover, the company has stated that the DG1 is in its development stage and is currently being seeded to developers who can work along with Intel to boost integration capabilities of the card.

Ventures Into the GPU Space

Per an article in the Verge, the Xe DG1 is the company’s first discrete graphics card in nearly two decades.

The article highlights that the DG1 is a next-gen integrated GPU, which has been separated from its CPU into its own discrete part, displaying the trappings of a desktop card on top. The new GPU set up is expected to help customers meet all types of graphical needs — from lightweight laptops to high-performance computing.

The card will be split into three different microarchitectures for low-, medium- and high-performance workloads — Xe LP, Xe HP and Xe HPC architectures.

Markedly, the launch of the DG1 card will enable Intel to compete with players like Advanced Micro Devices (AMD - Free Report) and Nvidia (NVDA - Free Report) that already have strong footing in the GPU arena.

But unlike AMD and Nvidia, Intel’s new GPU seems to be less powerful. Forbes highlights that the card lacks an external power connector. Markedly, Nvidia and AMD's products in the mid-range and above include six or eight pin power connectors.

Intel Corporation Price and Consensus

Wrapping Up

Intel initially focused on making the best computing chips and generating industry-leading margins from them. Currently, the company is focusing on a product range that targets different segments of the market. The company’s latest moves pertaining to the Xe DG1 graphics card is in sync with this strategy.

Although the DG1 is yet to be made available in the market and is currently in the development and testing stage by industry specific vendors, the initiative is a bold move.

Apart from this, we note that the company recently unveiled specifications of its 10th generation desktop family — codenamed Comet Lake-S. According to insights from Informatica Cero and VideoCardz, the Comet Lake-S CPU lineup will include hyperthreading in every core chip. Among other improvements, the 10th gen CPU family will aid clock speed to climb 100MHz to 200MHz.

We note that the PC shipments market has been reflecting improving trends lately. Amid such a scenario, Intel’s efforts to boost CPU and GPU offerings are likely to yield.  

Zacks Rank & Key Pick

Currently, Intel carries a Zacks Rank #3 (Hold).

A better-ranked stock in the broader technology sector is Microchip Technology Incorporated (MCHP - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Microchip is currently pegged at 11.8%.

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