Yesterday, we heard that chip stock Intel (INTC) was pushing further into edge artificial intelligence (AI), as it got involved with ZKH (ZKH) to produce a whole new AI model for industrial users. This was on top of a recent move made with ASRock Industrial. Now, Intel has another edge computing plan to bring out, this time with support from Altera. Intel stock slipped nearly 3% in Tuesday afternoon’s trading, and Intel has seen a 46.37% rally in its share price over the past year.
Pay for the Whole Seat, But You’ll Only Need the Edge
This time, Intel and Altera are getting together to produce a “flexible, real-time sensor bridge” for a range of applications. Aerospace, defense, healthcare and robotics will all be able to put this tool to use once it is ready. The sensor bridge in question brings together Altera’s line of field-programmable gate arrays (FPGAs) with Intel’s processors, connectivity tools and software.
Edge and physical AI systems tend to rely on a lot of data that is generated farther away from the network core. Whether it is cameras on a fence perimeter or systems on the factory floor, the data that these systems need is often not generated near a server. This is why edge systems need to be engineered in a specific way, accounting for power and connectivity needs, among other things, to work at their best. Intel and Altera’s sensor bridge should help offer the necessary power and flexibility required to make these systems deliver.
Nobody Tell Ohio
Meanwhile, Intel is already planning to work on a new chip factory, this time at its Ocotillo campus in South Chandler. This will likely come as a surprise to everyone in Ohio who was expecting Intel to be finished with that plant by now.
Intel expects the new South Chandler plant to start production before 2028, though it slowed the project for over a year while it waited to see if there would be enough demand for the products it would produce. Having determined that demand was sufficient, Intel has already started installing equipment and constructing buildings. The plant will be known as Fab 62, and will be the sixth chip factory at the Ocotillo campus.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on seven Buys, 25 Holds and one Sell assigned in the past three months, as indicated by the graphic below. The average INTC price target of $91.62 per share implies 59.15% upside potential.
