Intel’s (NASDAQ:INTC) 11th-generation processor release is a refreshing update. The company may have fallen years behind Advanced Micro Devices (NASDAQ:AMD) in manufacturing capabilities. That is not slowing the semiconductor behemoth. Getting the most out of the 14nm generation chips will keep Intel in the game.
Consumers do not care about what chip powers a computer. Price, performance, and heat output matter more. For now, Intel still has the edge because of its channel partners favoring it. And 'Rocket Lake' delivers, giving it a much-needed boost in the growing PC market.
Intel announced the i9-9900K may reach speeds of up to 5.3GHz. For just $100 more, customers get the Intel brand, as opposed to an AMD mid-range 5800X CPU. Intel also has a supply channel advantage. Dell (NYSE:DELL) and HP (NYSE:HPQ) have ample supplies of an Intel chip. Conversely, the latest AMD Ryzen processor is not available in most stores. Customers must wait for months before they may get one.
AMD may have better technology. This is not translating to the needed revenue acceleration from CPUs. The markets anticipated Intel’s continued dominance in the last year. The stock bounced back sharply from the sub-$44 lows of the year. The stock pays a modest dividend. As sales increase for this chip, the stock will outperform AMD again.
