At the Computex 2024 conference in Taipei, Taiwan, Intel (INTC) CEO Pat Gelsinger introduced the company’s new data center chip, Xeon 6. Yahoo Finance Technical Editor Dan Howley reveals the latest details about Intel’s chip offerings and their various use cases as Intel hopes to better compete with the likes of Nvidia (NVDA) and Advanced Micro Devices (AMD)
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This article was written by: Luke Carberry Mogan.
video transcript
Okay, chip war, we’re also tracking this morning as the chip war heats up Intel shares.
They’re upping the free market after announcing a new data center chip.
Now the unit is designed for high-performance computing for AI data centers and also offers an AI Accelerator.
Intel is falling far behind some of its chipmaker rivals, such as NVIDIA and A MD Intel’s new products.
Will they be enough to take some market share from the chip giants to disrupt everything?
Here we have Yahoo finance reporter Dan Howley, tech DH Dan, what do we know about this?
So is this important enough for Intel to take market share?
Yes, Brad, these are largely telegraphic announcements.
We have the Zion Six, which is the data center chip.
This isn’t necessarily an AI Accelerator like you’d get from NVIDIA or MD, it’s truly an all-purpose chip.
This is a high-performance computing chip rather than something that will power generating artificial intelligence, which is still very good.
This is what I mean, servers still need such CPU chips.
So this is a big announcement for Intel and for the industry, uh, the AI side of things with all the hype, uh, they announced the Godi chip pricing and they say it’s coming less than what you’ll see from NVIDIA.
Oh, or a doctor, they probably said vaguely who exactly was the opponent.
But still, the fact remains that you can buy a competitive chip for less than the price you have to pay.
The likes of NVIDIA or A MD are important because these chips cost tens of thousands of dollars.
These are the big deals popping up in Intel’s data centers daily.
They also announced new Lunar LA chips.
These are for consumer and commercial PCs, laptops and desktops.
And they say this is basically a chip that can compete with weapons like the chip line.
Ah, the Qualcomm Snap Dragon X Elite Series.
These chips are basically designed to rival what Apple has managed to do.
The Max packs power and performance into one chip with such long battery life and strong performance that it’s truly something that’s left behind on the windows side.
So Qualcomm went ahead and did it with the arm base chip.
And now Intel says they’re doing the same thing.
And by the way, A MD also announced its own new AI accelerator roadmap, as well as chips for laptops and desktops, and A IP CS.
Dan told me about the customer Indel is targeting and how it differs from NVIDIA.
From what I know they’ve talked a lot about enterprise customers here, and that’s an area where they see a stronger use case in terms of gaining market share from NVIDIA.
Yeah, I think the hyperscalers are actually Microsoft’s Google and they’re within NVIDIA at this point, you know, they’re, they’re, they’re offering competing chips as well just, you know, for their customers to have some sort of choice in terms of the types of chips they might want to leverage when it comes to developing themselves. Because they want Artificial intelligence platforms.
But this will allow other companies outside of hyperscale to transition to generative AI, potentially at a lower price.
And I think that’s something you need to know, uh, it’s not just hyperscale, it’s not just Microsoft, it’s not just the Googles, it’s not the Amazons, it’s not the Commodities, it’s the Teslas, what have, it’s, it’s healthcare, it’s, you know, individual uh research institutes .
Automotive industries.
This is where we can see Intel really shine.
Also, they, the AI accelerator chip, will pair nicely with the Zion six chip.
Uh just because they, you know, they’ll have compatibility because they come from the same manufacturer.
And I think that’s something that Intel also has in terms of market share.
You know, I mean look, NVIDIA still has a chance to be the leader in this space.
They, they, they know what they’re doing.
They’ve been doing this for a long time.
They have the software and hardware, they have the moat they built themselves.
It will take some time for companies to achieve success.
I don’t think this necessarily means we’ll see significant market share from Intel, but they’ll still gain some.
But, you know, it’s not the kind of thing that’s going to dethrone video in the long run.
Okay Dan, we should leave it at that.
Thank you so much for joining us on everything.
Chips, there’s a lot of news about your beat this week, and we always appreciate it.
Thanks a lot.