Intel Stock (NASDAQ:INTC) Plunges as it Rolls Out More New Processors

Chip stock Intel (INTC) has been on a roll lately with a string of new processors. We have seen several of these emerge just in the last few weeks. And now, two more are joining the fray in the Intel Core Ultra 200HX Plus series. Yet these new processors did surprisingly little to please shareholders, based on the over 3% loss seen in Tuesday afternoon’s trading.

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The Core Ultra 7 270HX Plus and the Core Ultra 9 290HX Plus are the two new processors that have emerged, and both promise substantial advances in performance, based on reports from Intel itself. These two processors have been specifically optimized for the most demanding tasks, specifically, gaming, streaming, content creation, and as workstation tools.

In fact, these two are among the first to offer support for the Intel Binary Optimization Tool (IBOT) that we learned about yesterday, which allows games to constantly be optimized for Intel hardware, even if they were optimized for a competitor’s chip or even a console chip. Reports suggest that the Ultra 9 290HX Plus offers an 8% improvement in gaming performance and 7% faster single-thread performance over the Ultra 9 285HX.

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Growing Nvidia Connection

Intel has also been building out its connection to Nvidia (NVDA), revealing that Xeon 6 processors will be going into the DGX Rubin NVL8 systems that Nvidia makes. This marks a growing shift in the artificial intelligence (AI) infrastructure market as it proceeds from its original path of training large models to a more operational approach of inferences.

The Xeon 6 will help build these systems with smoother overall data movement and better single-thread performance. This will, in turn, allow for smoother task management, offering solid performance and energy efficiency all in one package.

Is Intel a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on seven Buys, 22 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 76.54% rally in its share price over the past year, the average INTC price target of $47.97 per share implies 8.78% upside potential.

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