While certainly, chip stock Intel (INTC) offers a wide range of chips, much, much less thought is given to chip coolant. And as it turns out, chip coolant can make a lot more difference than you might think. Intel now has an official lubricant for its chips, and it comes from Shell (SHEL). This might not sound like much, but it was enough for investors to pile in and send Intel shares up nearly 1.5% in Tuesday afternoon’s trading.
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Typically, data centers are cooled with air, huge fans that help lower temperatures. And these fans in turn consume a lot of juice, on par with the computers themselves. Immersion coolant is another possibility, and it is one Intel is turning to with this new deal. In fact, noted Shell Lubricants global executive vice president Jason Wong, using immersion fluids along with air cooling can “…reduce data center energy use by up to 48%, as well as help reduce capital and operating expenditure by up to 33%.”
With the new coolant, Intel is actually now able to provide a “…immersion rider warranty on top of our standard warranty terms….” What that effectively means is “…we believe in this so much that you will be successful.” It is also the first time that Shell has been given official certification by a chip manufacturer, opening up a major new potential line of business for Shell.
Druid Breaks Cover
We know that Intel’s Battlemage GPU is proving a hot property, and we have also heard about the Celestial coming out before too much longer as well, eyeing a release of somewhere between 2026 and 2027. Somewhat less is known about the Druid, which was supposed to be the Celestial’s follow-up. That, however, changed with new reports today, as the Druid broke cover.
Intel is already working on the Xe4 architecture that will be a major part of the Druid, reports note. Aside from this—and the revelation that the Xe4 will be known as “Gen 15 architecture,” little else is known as yet of the Druid’s capabilities or its specs. But with at least two years to go before the Druid shows up, that is not especially surprising, and more about this chip will likely become available before too much longer has passed.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 28.57% loss in its share price over the past year, the average INTC price target of $21.29 per share implies 5.61% downside risk.
