Chip stock Intel (INTC) has been actively pursuing quantum processing for some time, which could help cement its position as one of the biggest names in quantum computing for some time to come. In fact, Intel recently got some help from IonQ (IONQ) in that vein. The move did not do much to endear shareholders, however, as Intel shares slid nearly 2.5% in Wednesday afternoon’s trading. Intel has seen a 296.73% rally in its share price over the past year.
A New Unified Front
Intel’s CEO, Lip-Bu Tan, noted that central processing units (CPUs), graphics processing units (GPUs), and quantum processors would likely be working together in computing to produce the best outcomes. But even as Tan projected what computing might look like, he noted that error correction was one big area that needed to improve. And that was where IonQ stepped in, noting that it had tested a quantum error-correction decoder that could work on a single CPU.
IonQ tested this error-correction system against a set of “simulated workloads,” according to a report from GuruFocus. The workloads in question covered 408 logical qubits, as well as over 31.5 million separate operations, all using a standard CPU. Amazingly, the decoder added only 0.02% to execution time in a standard environment. The important caveat, though, was that the workloads were simulated, which is not proof that the system is ready to go live. But if IonQ has a means for Intel to deliver that error correction, then one of the big hurdles may be handled sooner rather than later.
More Layoffs to Come
Intel will be pursuing those goals with fewer employees, noted a report from KRON 4. Four different South Bay locations will see cuts, with a grand total of 52 jobs lost. Of the employees cut, 22 will come from the Mission College Boulevard location, and one will come from the Laurelwood Road office. The remaining layoffs were taking place in unstated locations. The layoffs were also described as permanent, and will take effect September 30.
This layoff will be hard on those impacted, of course, but considering how many employees Intel has even now, after multiple rounds of layoffs already took place, it is likely that Intel will continue to function much as it did previously.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on seven Buys, 23 Holds and two Sells assigned in the past three months, as indicated by the graphic below. The average INTC price target of $117.56 per share implies 2.87% downside risk.
