Good news for Intel (NASDAQ:INTC) investors, as the chip stock snapped up modestly in Thursday afternoon’s trading following word that it was paring back its chip line and discontinuing a few models. With reports of new models waiting in the wings, the time to cut down the lineup and focus marketing efforts on a few models makes a particular kind of sense.
Intel noted that its 13th-generation K-series CPUs—particularly the i5, i7, and i9—would be discontinued before May 24, 2024. Basically, the line formerly known as Raptor Lake will be pulled out of circulation soon. Final shipments will end on June 28, 2024. While availability will likely still be healthy for a while, it’s a safe bet that anything K-series will start to dwindle ahead of the outright shutdown.
Yet, even as Raptor Lake is about to bid farewell, reports note that one older line, Alder Lake, will still be in play. That’s actually the generation from before Raptor Lake, which seems like an odd way to go. It’s unclear why Intel would cut off a product line only to keep an older product line in circulation; why not ditch the older models and let the newer model become the new older model?
Further Developments Await
While some are viewing this as a great time to get in on a solid line of overclockable processors before they disappear outright, others are looking to see what Intel will bring out in place of the Raptor Lake chips. The recent Intel Vision event gave us some insight, as Supermicro brought out some of its servers packing Intel Xeon 6 chips.
Reports suggest that Supermicro’s servers were duly impressive, especially the ones that featured the new Gaudi 3 system that Intel recently showed off. Plus, there are signs that some of Intel’s standards are leaking into the broader ecosystem, as Supermicro put Intel’s DC-MHS standard to work into its servers.
Is Intel Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 24 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 19.08% rally in its share price over the past year, the average INTC price target of $45.05 per share implies 20.09% upside potential.
