Can Intel Cash in on Getac's F120 Launch to Scale AI-Enhanced Tasks?

Intel Corporation INTC recently announced that its AI Boost NPU and Intel Core Ultra 200V Series Processor will power the world’s first fully rugged Copilot+PC in tablet form. Dubbed F120, this state-of-the-art tablet is manufactured by Getac Technology Corporation, a leading provider of rugged computing and mobile video solutions. Designed to harness AI (artificial intelligence) capabilities in complex and challenging environments across the defense, utilities, manufacturing and automotive industries, the F120 boasts seamless multitasking prowess, courtesy of Intel’s NPU and processor support.INTC Focusing on AI Chips  The increased adoption of Intel processors and NPUs follows the positive feedback of Xeon 6 processors with Performance-cores (P-Cores). This system-on-chip (SoC) has been designed to meet the huge demand for high AI workloads across various sectors. With industry-leading performance across data center workloads and up to two times higher performance in AI processing, the Xeon 6 family delivers the industry’s best central processing unit (CPU) for AI at a lower total cost of ownership (TCO). Intel Xeon platforms have reportedly set the benchmark in 5G cloud-native core with substantial performance and power-efficiency improvements, additional power-saving capabilities and easy-to-deploy software. This has triggered healthy demand trends from major telecom equipment manufacturers and independent software vendors to optimize and unleash proven power savings for a more sustainable future.Intel has also partnered with Exostellar to make enterprise-grade AI infrastructure accessible in a cost-effective manner. Intel’s partnership with this leading innovator in autonomous compute orchestration and cloud optimization, which leverages AI and ML technologies, is likely to deliver an end-to-end solution with support for quota enforcement, dynamic borrowing, fair queuing and priority-based scheduling. This, in turn, will bring cloud-like agility and efficiency to on-premises or hybrid infrastructure for a more competitive AI hardware ecosystem.Price PerformanceWith healthy AI chip traction, Intel has gained 24.6% in the past year compared with the industry’s growth of 54.5%, lagging NVIDIA Corporation NVDA but outperforming Advanced Micro Devices, Inc. AMD. While Advanced Micro has gained 15.2%, NVIDIA is up 60.8% over this period. One-Year INTC Stock Price PerformanceImage Source: Zacks Investment ResearchEstimate Revision Trend of INTCEarnings estimates for Intel for 2025 have moved down 87.2% to 14 cents over the past year, while the same for 2026 has declined 64.6% to 68 cents. The negative estimate revision depicts bearish sentiments for the stock.Image Source: Zacks Investment ResearchINTC Plagued by Margin WoesAlthough Intel has scaled its AI footprint, it seems to lag NVIDIA on the innovation front, with the latter’s H100 and Blackwell GPUs being runaway successes. Leading technology companies are reportedly piling up NVIDIA’s GPUs to build clusters of computers for their AI work, leading to exponential revenue growth. An accelerated ramp-up of AI PCs further affected the short-term margins of Intel as it shifted production to its high-volume facility in Ireland, where wafer costs are typically higher. Margins were also adversely impacted by higher charges related to non-core businesses, charges associated with unused capacity and an unfavorable product mix. Image Source: Zacks Investment ResearchBitter China Trade Ties Hurt INTCChina accounted for more than 29% of Intel's total revenues in 2024, making it the single largest market for the company. However, the communist nation's purported move to replace U.S.-made chips with domestic alternatives significantly affected INTC’s revenue prospects. The directive to phase out foreign chips from key telecom networks by 2027 underscores Beijing's accelerating efforts to reduce reliance on Western technology amid escalating U.S.-China tensions.Moreover, weaker spending across consumer and enterprise markets, especially in China, resulted in elevated customer inventory levels, resulting in soft demand trends. Strict export control measures are likely to affect the market dynamics further, leading to below-par revenue growth in the near term.End NoteIntel has been facing challenges due to the disruptive rise of over-the-top service providers in this dynamic industry. Price-sensitive competition for customer retention in the core business is expected to intensify in the coming days. Aggressive competition is likely to limit the ability to attract and retain customers and affect operating and financial results.The road ahead for Intel is bumpy and strewn with daunting challenges, and how it navigates these roadblocks in the coming days remains to be seen. Intel carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks