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Intel (INTC) to Drive PC Innovation With New Lakeview Chips

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Intel (INTC - Free Report) recently introduced two new Intel Core processors, i5-L16G7 and i3-L13G4, based on the latest Intel Hybrid technology dubbed Lakeview.

The new processors leverage Intel’s Foveros 3D packaging technology and the ‘Lakeview’ hybrid CPU architecture to deliver superior power and performance. Moreover, they are the smallest processors to provide Intel Core performance and full Windows compatibility for enhanced productivity and content creation experiences.

Systems featuring the new processors are anticipated to be available in the upcoming months. Notably, the hybrid technology-based processors have been adopted by Lenovo (LNVGY - Free Report) for its ThinkPad X1 Fold device, which is expected to ship this year. Samsung has also selected the processors for the new Galaxy Book S, which is expected to available starting in June.

Growing clout of Intel’s latest processors bodes well for its top-line. This, in turn, is expected to instill investor confidence in the stock in the days ahead. Notably, shares of Intel have returned 6.7% in the year-to-date period compared with the industry’s rally of 17.7%.

Intel Corporation Price and Consensus

Robust Features at a Glance

The two Intel Core processors with Intel Hybrid Technology feature attached package-on-package (PoP) memory, which has reduced the board size by 47% compared with Intel Y-series processors. Moreover, they come with native dual internal display pipes which make them suitable for foldable and dual-screen devices.

Moreover, both processors feature a core count of 5 with 5 threads. They also come with Hardware-guided OS scheduling that enables real-time communication between the processor and the OS scheduler to run the right apps on the right cores.

The processors use a 10 nanometer (nm) Sunny Cove core, which allows them to handle intense workloads and foreground applications, while four power-efficient Tremont cores balance power and performance optimization for background tasks.

Further, integrated Wi-Fi 6 (Gig+) connectivity and Intel LTE solutions provides users with advanced video conferencing and streaming capabilities. Additionally, Gen11 graphics provides support for up to four external 4K displays, as well as enhanced visuals for content creation and entertainment.

Innovation in PC Market to Boost Adoption

The unique features of the new processors make them an ideal fit for next-generation PCs and have well positioned Intel to capitalize on the upcoming introduction of foldable and dual-screen computers in the market.

We believe that the emergence of high-end cloud computing, thinner laptops, dual-screen devices, and demand for fast data processing favors growth prospects for the newly-introduced processors. Notably, Microsoft’ (MSFT - Free Report) first dual-screen laptop Microsoft Surface Neo, will run on Intel Lakeview processors and is expected to be available this year.

Moreover, the rapid innovation taking place in the PC industry will drive adoption of Intel’s next-gen processors that will aid the company generate incremental revenues in the quarters ahead. Markedly, existing convertible and hybrid laptops like the Dell XPS 13 and Microsoft Surface Pro 2 already utilize Intel processors.

Nevertheless, stiff competition from Advanced Micro Devices (AMD - Free Report) is likely to lead to pricing pressure and limit margin expansion at least in the near term. Notably, AMD aims to deliver “Zen 4” core architecture, which leverages Taiwan Semiconductor Manufacturing Company’s enhanced 5 nm process technology. It is a major concern as Intel is yet to deliver even 7 nm chips. Notably, Intel’s chips utilize process technologies that are designed in-house.

Intel, which currently carries a Zacks Rank #3 (Hold), is likely to be affected by Apple’s decision to replace Intel’s chips with its own Arm-based processors for Mac computers by 2021. You can see the complete list of today’s Zacks #1 Rank stocks here.

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