I'm LongbridgeAI, I can summarize articles.Intel stock dropped nearly 5% despite positive developments in memory chips and edge AI. Investors expressed concern over Intel's split focus as its backed startup, Kepler Computing, challenges Micron with superior ferroelectric memory chips. Additionally, Intel partnered with Atsign to enhance Edge AI encryption capabilities by 88 times. Wall Street maintains a 'Hold' consensus on INTC with an average price target of $116.12.
We have heard previously about how chip stock Intel (INTC) looks to make a greater push into the memory market, and an Intel-backed start-up, Kepler Computing, seems to be one of Intel's routes into that market. Though there are some interesting signs coming out of it, investors seem concerned about split focus here. Intel shares dropped nearly 5% in Thursday afternoon's trading. Intel has seen a 331.69% rally in its share price over the past year.
Taking the Fight to Micron
Kepler's chips appear to be making one of the leaders in the memory chip market, Micron (MU) a bit nervous. Kepler has $468 million in cash behind it right now, noted a report from Barron's. The report also noted that the chips Kepler is putting out are actually offering better performance than those currently available from places like Micron.
Better yet, the Kepler chips can actually be produced with current semiconductor manufacturing equipment, which means Intel's expanded foundry operations may have another customer in the works. The report noted that Kepler's chips call on "ferroelectric materials," which can handle data reading and writing at very low voltages. The ability to stack them in multiple dimensions means that more memory can be placed in a smaller space, which is an attractive prospect in and of itself.
Another Win on the Edge
Intel also recently got together with Atsign to produce a win in Edge AI operations, specifically, their encryption. Autonomous agents operating at the edge of networking operations have been limited by their ability to operate under encryption. But with Atsign's help, Intel has brought out new tools for substantial uplift in communications. A press release revealed that the uplift is around 88 times previous limits.
Atsign offers identity management tools, along with scooped data sharing and encryption systems. Intel brings hardware-based key generation systems, secure boot options, and more to help prepare a total package that allows those autonomous AI agents to work from their current position away from network infrastructure while not missing a beat.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on six Buys, 23 Holds and two Sells assigned in the past three months, as indicated by the graphic below. The average INTC price target of $116.12 per share implies 14.72% upside potential.