Intel Corporation (NASDAQ:INTC) Has A New Gaming Processor
Intel Corporation (NASDAQ:INTC) recently announced the release of its 8th generation Coffee Lake processors dubbed as the best desktop gaming processors on the market. This release is widely regarded as a move to compete with the success of the Ryzen gaming processors from Advanced Micro Devices, Inc. (NASDAQ:AMD) released earlier this year.
Some analysts have viewed the release of the Coffee Lake processors as a rushed decision on Intel’s part, which could have some negative effects on the company. A key factor highlighted by analysts is the fact that there might be a shortage of the new processors on the market due to production issues.
The new processors also require users to upgrade their motherboards, which is an added cost that many current users of Intel’s 7th generation processors might choose not to incur. The lack of availability of the new processors in the market and the associated motherboard upgrading costs might lead many gamers to choosing the Ryzen processors from AMD.
Many gaming reviewers rated the Coffee Lake Core i7-8700K as being better than the Ryzen 7 1800K processor in single threaded operations. The new processor also performed well in non-gaming tasks such as datacenter usage.
The impact of the sales of the new processors will be felt on the company’s bottom line by end of year or early next year. However, Intel has solid fundamentals and is exploiting other opportunities to boost the company’s revenues away from the desktop computer market.
Intel collaborated with Intelsat SA (NYSE:I) in presenting a proposal to the FCC regarding the implementation of 5G mobile networks in the USA. According to this proposal mobile carriers would use the C-band frequencies developed and maintained by satellite companies to bring 5G connectivity to various metropolitan areas.
The above proposal stands to benefit the two companies significantly given that Intel is likely to manufacture many of the chips used in IoT (Internet of Things) devices connected to the 5G networks. It is estimated that at least 50 billion IoT devices will be connected to the much faster 5G networks, which could significantly impact Intel’s bottom line if the proposal is approved.
The opinion regarding the success of Intel’s latest gaming CPU is divided. However, the question remains whether the company is a good long-term investment.
To find out more about where we believe this stock is going to go in the future, subscribe to our proactive investment newsletter. As a free trial member, you will have access to over 1300 real time stock trading reports full of actionable trading strategies.