Intel Corporation (INTC - Free Report) recently announced that it had extended its collaboration with Amazon Web Services, Inc. (AWS), a wholly-owned subsidiary of Amazon.com (AMZN - Free Report) . The collaboration involves co-investment by the companies in custom chip designs under a multi-year, multi-billion-dollar framework.
Under this expanded agreement, the semiconductor company will develop an AI fabric chip for AWS, leveraging its most advanced Intel 18A process node. Additionally, a custom Xeon 6 chip will be produced on Intel 3, strengthening its existing partnership in which Intel provides Xeon Scalable processors for AWS.
Intel continues its longstanding relationship with AWS, which began in 2006 with the launch of the latter's first Amazon EC2 instances featuring Intel's Xeon Scalable processors. The company is making solid progress in its Xeon processors, including the Intel Xeon 6 processor with Performance cores (P-cores), which is expected to begin shipping in the third quarter of 2024, along with the Intel Gaudi 3 AI accelerator.
Intel has also announced the launch of glass substrates for advanced packaging of chips. This industry-leading product is likely to be available for mass consumption in the second half of this decade as it aims to deliver 1 trillion transistors on a package by 2030.
Will INTC Stock Benefit From the Collaboration?
The expanded partnership between Intel and AWS underscores the commitment of both companies to advancing U.S.-based semiconductor manufacturing and fostering a vibrant AI ecosystem in Ohio. Intel remains dedicated to its New Albany manufacturing site, while AWS plans to invest $7.8 billion to expand its data center operations in Central Ohio, adding to the $10.3 billion previously invested in the state since 2015. This collaboration is expected to drive innovation across their shared ecosystem, bolster growth of both companies and contribute to a sustainable domestic AI supply chain.
Looking ahead, the companies intend to explore further opportunities for chip designs based on Intel 18A and future process nodes, including Intel 18AP and Intel 14A, which are expected to be produced at Intel’s Ohio facilities. This expansion may also include migrating existing Intel designs to these advanced platforms, continuing their tradition of innovation and collaboration.
All these advancements will likely generate incremental demands for Intel’s goods and services, leading to higher revenues. Improving financial performance is likely to propel the stock upward.
INTC’s Stock Price Performance
Shares of Intel have lost 45% over the past year against the industry’s growth of 125%.
Image Source: Zacks Investment Research
INTC’s Zacks Rank and Key Picks
Intel currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader industry have been discussed below.
Ubiquiti Inc. (UI - Free Report) carries a Zacks Rank #2 (Buy) at present. The company offers a comprehensive suite of networking products and solutions for service providers and enterprises. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its UI’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 4.19%.
Airgain, Inc. (AIRG - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 35%.
Based in San Diego, CA, Airgain provides antenna products as integrated wireless solutions. These devices are designed to address vital connectivity requirements during product development and throughout the entire lifecycle of other industries, such as automotive and consumer, in addition to various sectors within an enterprise.
Intel Corporation (INTC - Free Report) recently announced that it had extended its collaboration with Amazon Web Services, Inc. (AWS), a wholly-owned subsidiary of Amazon.com (AMZN - Free Report) . The collaboration involves co-investment by the companies in custom chip designs under a multi-year, multi-billion-dollar framework.
Under this expanded agreement, the semiconductor company will develop an AI fabric chip for AWS, leveraging its most advanced Intel 18A process node. Additionally, a custom Xeon 6 chip will be produced on Intel 3, strengthening its existing partnership in which Intel provides Xeon Scalable processors for AWS.
Intel continues its longstanding relationship with AWS, which began in 2006 with the launch of the latter's first Amazon EC2 instances featuring Intel's Xeon Scalable processors. The company is making solid progress in its Xeon processors, including the Intel Xeon 6 processor with Performance cores (P-cores), which is expected to begin shipping in the third quarter of 2024, along with the Intel Gaudi 3 AI accelerator.
Intel has also announced the launch of glass substrates for advanced packaging of chips. This industry-leading product is likely to be available for mass consumption in the second half of this decade as it aims to deliver 1 trillion transistors on a package by 2030.
Will INTC Stock Benefit From the Collaboration?
The expanded partnership between Intel and AWS underscores the commitment of both companies to advancing U.S.-based semiconductor manufacturing and fostering a vibrant AI ecosystem in Ohio. Intel remains dedicated to its New Albany manufacturing site, while AWS plans to invest $7.8 billion to expand its data center operations in Central Ohio, adding to the $10.3 billion previously invested in the state since 2015. This collaboration is expected to drive innovation across their shared ecosystem, bolster growth of both companies and contribute to a sustainable domestic AI supply chain.
Looking ahead, the companies intend to explore further opportunities for chip designs based on Intel 18A and future process nodes, including Intel 18AP and Intel 14A, which are expected to be produced at Intel’s Ohio facilities. This expansion may also include migrating existing Intel designs to these advanced platforms, continuing their tradition of innovation and collaboration.
All these advancements will likely generate incremental demands for Intel’s goods and services, leading to higher revenues. Improving financial performance is likely to propel the stock upward.
INTC’s Stock Price Performance
Shares of Intel have lost 45% over the past year against the industry’s growth of 125%.
Image Source: Zacks Investment Research
INTC’s Zacks Rank and Key Picks
Intel currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader industry have been discussed below.
Ubiquiti Inc. (UI - Free Report) carries a Zacks Rank #2 (Buy) at present. The company offers a comprehensive suite of networking products and solutions for service providers and enterprises. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its UI’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 4.19%.
Airgain, Inc. (AIRG - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 35%.
Based in San Diego, CA, Airgain provides antenna products as integrated wireless solutions. These devices are designed to address vital connectivity requirements during product development and throughout the entire lifecycle of other industries, such as automotive and consumer, in addition to various sectors within an enterprise.
Get the latest research report on AMZN - FREE
Get the latest research report on INTC - FREE
Get the latest research report on AIRG - FREE
Get the latest research report on UI - FREE