Amid a weak opening to start the new year, otherwise embattled semiconductor stalwart Intel (NASDAQ:INTC) moved conspicuously against the grain. At CES 2023 — the technology industry’s biggest trade show — Intel debuted what it said represents the world’s fastest mobile processor. While the chip is probably overkill for most users, for the professionals that Intel targets, the innovation could help move the needle forward for INTC stock.
Embodying the flagship of the tech giant’s 13th generation Intel Core mobile processor family, the Core i9-13980HX features a 24-core processor, a first for a laptop. Further, the lineup delivers up to 5.6 gigahertz (GHz) turbo frequency, the highest clock speed available for the laptop market. Additionally, users enjoy full memory support of up to 128 gigabytes (GB) total for DDR5 (up to 5,600 MHz) and DDR4 (up to 3,200 MHz).
Complementing the superior processor firepower, Intel also raised the bar with its Evo laptop specifications. Under this new architecture, Evo-integrated laptops will benefit from (among other attributes) consistent responsiveness while unplugged, longer real-world battery life, instant wake and fast charge.
While perhaps not a decisive paradigm shift, the incredible mobile power output could distinguish Intel from the crowded competition, potentially leading to greater demand for INTC stock. “The 13th Gen Intel Core mobile processor family delivers unrivaled, scalable performance for leadership platforms across all laptop segments,” said Michelle Johnston Holthaus, executive vice president and general manager of the Client Computing Group at Intel.
Processing Boost Provides Potential Upside for INTC Stock
Although the outstanding processing power of the Core i9-13980HX presents eye candy for prospective investors of INTC stock, in fairness, the performance will likely be overkill for most laptop users. Under a challenging environment for the consumer economy, Intel probably won’t win the volume game. The concept of nice to have flies better during decisively bullish market cycles.
For instance, Intel’s flagship chip includes eight performance cores for processor-intensive tasks. As well, it features 14 efficiency cores for more mundane activities which can be juiced to the aforementioned 5.6 GHz. “That’s wildly fast for a processor, and, in most cases, unnecessary for the large majority of consumers,” wrote Daniel Howley, Technology Editor for Yahoo Finance.
Nevertheless, INTC stock may have a strong winner on its hands. That’s because the underlying enterprise targets professional users (especially because of its stratospheric price tag). Therefore, in terms of quality over quantity, Intel may attract investor attention.
According to Expert Market Research, the global laptop market reached a valuation of $165.33 billion in 2021. Analysts there project that this segment will expand at a compound annual growth rate (CAGR) of 3.9%. In contrast, the global gaming laptop market reached a value of approximately $10.84 billion in 2021. However, experts at Proficient Market Insights anticipate this subsector to hit over $17 billion by 2027, representing a CAGR of 7.88% from 2022.
It is also important to remember that INTC stock tumbled nearly 50% in the trailing year. Still, given the lucrative potential of the gaming subsegment, Intel’s new processor could help spark a recovery.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
