Intel Corporation INTC has launched Intel Xeon 6 processors with Performance-cores (P-Cores) to cater to the huge demand for high AI (artificial intelligence) workloads across diverse sectors. With industry-leading performance across data center workloads and up to two times higher performance in AI processing, the Xeon 6 family delivers the industry’s best CPU for AI at a lower total cost of ownership (TCO).

Digging Deep Into Intel Xeon 6 Processors

Based on the x86 computer architecture, the new Intel Xeon 6700/6500 series processors are designed with high core counts and built-in acceleration for multiple segments. The processors deliver an average of 1.4x better performance than the previous generations available in the market. In addition, with a 5:1 consolidation of a 5-year-old server on average, the Xeon 6 processors enable significant performance-per-watt efficiency, resulting in up to 68% savings in TCO. Consequently, the new breed of Xeon 6 processors offers the perfect balance between performance and energy efficiency.

The Intel Xeon 6 processor for network and edge platforms leverages Intel’s built-in accelerators for virtualized radio access networks (vRAN), media, AI and network security to address the growing demand for network and edge solutions in an AI-driven world. It delivers up to 2.4x the RAN capacity and a 70% improvement in performance-per-watt compared to previous generations thanks to Intel vRAN Boost.

INTC Stock to Benefit?

Intel Xeon platforms have reportedly set the benchmark in 5G cloud-native core with substantial performance and power-efficiency improvements, additional power-saving capabilities and easy-to-deploy software. This has triggered healthy demand trends from major telecom equipment manufacturers and independent software vendors to optimize and unleash proven power savings for a more sustainable future.

Intel has witnessed healthy traction in AI PCs that has taken the market by storm and remains firmly on track to ship more than 100 million by the end of 2025. Panther Lake – the chip based on Intel 18A and the architectural successor to the well-received Lunar Lake – is slated to be launched in the second half of 2025, while Clearwater Forest – the first Intel 18A server product – is likely to be unveiled in the first half of 2026. 

The company has introduced the Intel Core Ultra, which features a neural processing unit that enables power-efficient AI acceleration with 2.5x better power efficiency than the previous generation. With superior GPU and CPU capabilities, it can speed up AI solutions. The company also launched the new vPro platform with Intel Core Ultra processor that delivers enhanced power efficiency. With dedicated AI acceleration capability spread across the central processing unit, graphics processing unit and the new neural processing unit, it will unlock an endless new wave of AI experiences across all apps.

However, despite an accelerated ramp-up of AI PCs, the stock has plunged 43.6% in the past year against the industry’s growth of 51.1%. It remains to be seen if the latest product launches can buoy the stock price.

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Zacks Rank & Stocks to Consider

Intel currently carries a Zacks Rank #3 (Hold). 

Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy) at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experiences. Arista delivered an earnings surprise of 14.8%, on average, in the trailing four quarters. It is well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Juniper Networks Inc. JNPR, currently carrying a Zacks Rank #2, is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help to build network infrastructure used for services and applications based on single Internet protocol network worldwide. Juniper offers a broad range of routing, switching and security products. Juniper has a long-term earnings growth expectation of 12.4%. 

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 15%. IDCC is a pioneer in advanced mobile technologies enabling wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions for use in digital cellular, as well as wireless 3G, 4G, and IEEE 802-related products and networks.

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