What Intel’s (INTC) 8th Gen Processors Launch Means To Advanced Micro Devices, Inc. (AMD)


Intel Corporation (NASDAQ:INTC) launched its 8th generation of U-Series Core Processors that could find their way into Apple’s future MacBooks. These newest chips will provide up to a 40% boost in computing productivity and more for laptops and 2-in-1 devices. Despite the speed bump, the chips are based on the same Kaby Lake microarchitecture as the 7th-generation Intel processors, and are manufactured using the same 14nm process.

“We wanted to deliver the platform-wide improvements that embrace and enhance all of the incredible innovation around us – from 4K to VR and beyond – and make them more accessible to everyone”, Gregory Bryant, senior vice president and general manager of the Client Computing Group at Intel, said in a blog post.

Intel’s 8th-gen processors are raising their core count to battle the threat from AMD’s disruptive Ryzen processors. Rosenblatt analyst Hans Mosesmann believes that Intel has attempted to blunt AMD’s Ryzen and Zen momentum and by doing so opened the kimono just enough to show they are responding to market dynamics beyond their control, and have confirmed the analyst’s view that their 10nm process node is not close for prime time. “The 10nm dynamic is unsettling for Intel’s datacenter roadmap to say the least. To wit, most foundry players will enable their customers to move to 7nm in 2018 and displaying for the first time a semiconductor environment where Intel is not in unambiguous leadership. Both AMD and Nvidia will be moving to 7nm in 2018 in CPUs and GPUs for example.” says Mosesmann.

Mosesmann continued, “Kaby Lake is in production now and likely unveiled to respond to AMD’s Ryzen Mobile, which assuming both products are at 4 cores (AMD could be moving to 6 cores), sets up from an interesting mano a mano this holiday season. Ryzen Mobile will likely have an integrated Vega GPU and as such is the one to beat in our opinion.”

The analyst remains split in terms of ratings. Mosesmann rates AMD a Buy, while keeping his rating on INTC at Sell. (To watch Mosesmann’s track record, click here)


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