Intel Stock (NASDAQ:INTC) Gains as 6G Connections Take Hold

For a while there, things were not looking bright for chip stock Intel INTC +1.92% ▲ . It was left behind on the artificial intelligence (AI) revolution, and its primary stock, processors for normal users, was under fire from various competitors. But Intel looks to be getting in on the next big thing, in all likelihood, and building out partnerships in 6G. This is catching investor attention as well, and shares are up over 3% in Monday afternoon’s trading.

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Intel has set up a range of new alliances, all in an effort to make itself an indispensable part of the 6G ecosystem before it ever even makes its way to a phone company’s marketing. Early reports note that its current lineup of computing deployments is doing nicely, and Intel even has a new independent chair in this field in Craig H. Barratt.

This in turn is giving Intel a much better position in the 6G market, which has not even truly begun yet. But it also gives Intel an edge in 5G, which is much more prevalent. It also gives Intel a better stake in secure data processing and even AI infrastructure, points where Intel previously was much less seen. This will not be an easy path, however. Intel has several near-term challenges to address, like its huge capital needs and its cash flow issues. Intel put a lot into its foundry operations, and those need to bear fruit first…and quickly.

IBOT Gaming Gains

Meanwhile, Intel also rolled out its Intel Binary Optimization Tool, or IBOT. The IBOT looks to give central processing unit (CPU) performance a boost, and in so doing, offer value for the gaming market. Gaming is one of the biggest parts of PC ownership, right alongside productivity. So if Intel can find a way to push more performance out of its processors, that makes said processors that much more attractive in the market.

Basically, most games are optimized for one processor architecture, whether it is Intel x86, competitor x86, or console x86. But with IBOT, Intel can effectively take a game optimized for a competitor or a console’s architecture, and make it optimized for Intel. That makes Intel processors that much more attractive, as they would be inherently more versatile.

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 78.16% rally in its share price over the past year, the average INTC price target of $47.97 per share implies 1.73% upside potential.

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