Chip stock Intel (INTC) plunged in Tuesday’s trading after word of a new test from Qualcomm (QCOM) showed off the remarkable power of the Snapdragon X2 Elite Extreme processor. It not only beats Intel processors on cost, but also on overall capability, and that is a combination that is extremely hazardous for Intel. Intel shares plunged over 7% in Tuesday afternoon’s trading.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 23 Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 308.89% rally in its share price over the past year, the average INTC price target of $118.93 per share implies 21.91% upside potential.
The Snapdragon Gap
The new reports from independent testing group Signal65 point out a glaring gap between the Qualcomm Snapdragon X2 Elite Extreme and the closest Intel competitor. When used in Geekbench 7 testing, the Snapdragon managed to deliver 53% more speed than the closest comparable Intel chip, and also up to 83% more speed than the closest comparable AMD (AMD) chip as well. Amazingly, the Elite Extreme delivered better capability whether it was plugged in and running in Best Performance mode, or it was running on battery power in Balanced mode. It might concern some that the Signal65 study was commissioned by Qualcomm itself, but Signal65 has a reputation for independence and credibility.
Casualty of Politics in Ohio
Meanwhile, Intel also found itself a campaign talking point in the race for Attorney General in Ohio. Reports from the Ohio Capital Journal note that Democrat candidate John Kulewicz is calling for the state inspector general to investigate potential connections between Intel, the governor’s office, and JobsOhio. Given that the current chair of JobsOhio, Josh Rubin, is also a lobbyist, there may be something to that. And given that Keith Faber, the Republican candidate, did not respond to questions about the matter, Kulewicz may be on to something.
