Intel INTC recently rolled out 10th generation Core H-series mobile processors with high performance and fast frequency capabilities to provide immersive gaming experience to enthusiasts.
Particularly, Intel Core i9-10980HK offers faster gaming performance with up to 5.3 GHz Turbo frequency and 2.4 GHz clock speed; and features eight cores and 16 threads and 16 MB of Intel Smart Cache.
Moreover, unlocked feature of Core i9-10980HK processor aids gamers and creators to optimize, customize and tune the CPU’s performance to ensure an advanced gameplay.
The improved technical features to deliver high performance and faster loading of games, and enhanced gameplay are expected to boost adoption. This, in turn, is anticipated to drive revenues in the coming quarters.
Markedly, laptops featuring the latest processors, from companies including Dell, Lenovo, HP, MSI, GIGABYTE, are set to launch in the days ahead. For instance, GIGABYTE has already launched latest version of AORUS and AERO series of professional gaming laptops, which utilize Intel’s new processors and NVIDIA’s NVDA GeForce RTX 20-Super GPUs.
Notably, shares of Intel were up 4.8% on Apr 2, eventually closing at $54.35. On a year-to-date basis, the stock is down 9.2%, compared with the industry’s decline of 7.8%.
Robust Features at a Glance
Intel aims to deliver lower latency and facilitate more responsive PC gaming experience on a laptop with higher frequency feature.
With the new processors, laptops will be able to utilize the chipmaker’s Optane memory, Wi-Fi 6 AX201 (Gig+), and Thunderbolt and advanced tuning technology functionalities, as well.
These integrations provide advanced desktop-quality gaming experience with faster game launch and seamless load of 4K content graphics, with more frames per second.
Gaming Market Growth to Aid Amid Stiff Competition
Gamers are increasingly opting for more mobile solutions, primarily thinner and light weight gaming notebooks. Per IDC data, gaming notebook market is expected to witness a CAGR of 7.4% to reach 26.4 million units in 2023. The market share of gaming notebooks is expected to grow to 48.5% by 2023, from 45.5% estimated in 2019.
Overall, the gaming market is projected to hit $160 billion in 2020, up 7.3% year over year, per a report by Newzoo. Moreover, the cloud gaming market is expected to hit $3.107 billion by 2024, from $306 million in 2019 at a CAGR of 59%, according to MarketsandMarkets data.
These growth projections strengthen prospects of Intel’s new processors. Moreover, coronavirus-induced lockdown has triggered a stay-at-home wave and led to a spike in gamers, which is likely to boost demand for advanced gaming laptops. This scenario bodes well for the chipmaker’s latest offering.
However, the company has been facing stiff competition from AMD AMD lately, primarily due to process delays. Notably, Intel’s chips utilize process technologies that are designed in-house.
Meanwhile, AMD is currently leveraging Taiwan Semiconductor Manufacturing Company’s TSM 7 nanometer (nm) process technology, which is enabling it to deliver its advanced 7 nm chips faster to market.
Further, AMD aims to deliver “Zen 4” core architecture, which is “currently in design” utilizing advanced 5 nm process technology.
This is a major concern for Intel, which is yet to deliver 7 nm chips. Intense competition from AMD is likely to lead to pricing pressure and limit margin expansion at least in the near term.
Intel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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