Intel (INTC) has joined hands with Snowflake (SNOW), and the latter will become a part of Intel Disruptor Initiative Program. The companies plan to offer clients improved flexibility across multiple public clouds with Snowflake’s Data Cloud using Intel Xeon Scalable processors and Intel Xeon-based cloud instances.
Both the companies seek to do performance testing on their clouds and hardware instances with a view to match up the best performing Intel-based instances for specific Snowflake workloads.
Based on testing results, Snowflake will be able to optimize instances with multiple cloud providers. Also, Intel will design and produce chips that support specific workloads.
Meanwhile, Intel said that it was working on Snowflake’s search engine optimization when used to search semi-structured data like JSON. (See Insiders’ Hot Stocks on TipRanks)
With this deal, Intel seeks to enhance open-source technologies used in Snowflake’s software stack such as Foundation DB to accelerate workloads optimized for Intel’s processors, enabling customer use cases with performance advantages.
The Chief Technology Officer in the Datacenter and AI Group at Intel, Arijit Bandyopadhyay, said, “Intel’s engineering teams help disruptor innovators exploit the latest Intel products together with leading software optimizations and silicon engineering to optimize critical workloads across deployment models. Together with teams like Snowflake engineering, we can reach new heights in SQL query acceleration while innovating on the next-generation hyperscaler instance designs across major cloud providers.”
Earlier this month, Northland Securities analyst Gus Richard upgraded Intel’s rating to Hold from Sell with a price target of $49 (1.7% downside potential from current level).
Overall, the stock has a Hold consensus rating based on 4 Buys, 12 Holds, and 6 Sells. The average Intel price target of $53.90 implies 8.2% upside potential to current levels. Shares have gained 8.2% over the past year.
Furthermore, Intel scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.