Intel flexes its new chips at the Computex 2024 conference

At the Computex 2024 conference in Taipei, Taiwan, Intel (INTC) CEO Pat Gelsinger showcased the company's new data center chip, the Xeon 6. Yahoo Finance Tech Editor Dan Howley explains the latest details on 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 post was written by Luke Carberry Mogan.

Video Transcript

All right, the chip war, we're also tracking that this morning the chip war is heating up Intel shares.

They are moving higher free market after announcing a new data center chip.

Now, the unit is designed for high performance computing for A I data centers and introducing an A I Accelerator as well.

Intel has been lagging far behind some of those chip maker competitors like NVIDIA and A MD Intel's new products though.

Are they enough to take some market share from the chip giants to break it all down?

We've got Yahoo finance reporter Dan Howley here with us, our tech DH Dan, what do we know about this?

And is it significant enough for Intel to take some market share?

Yeah, Brad, these, these are kind of the the announcements have largely been telegraphed.

The, we have the, the Zion six that's the data center uh uh chip.

It's not necessarily an A I Accelerator like what you would get from NVIDIA uh or, or A MD, it's really an all uh kind of purpose chip.

It's, it's a high performance computing chip rather than something that would power uh say generate the A I uh that's still very good.

This is something that uh I mean, servers still need these kind of CPU chips.

So this is a, a big announcement uh for Intel and for, for the industry uh on the, the A I side of things where all the hype is, uh they announced their Godi chip pricing, uh which they say is going to come in less than what you would see from uh NVIDIA.

Uh or, or a MD, presumably they did say exactly who just competitors vaguely.

Uh But still the fact that uh you would be able to purchase a competitive chip uh at a price that's lower than what you would have to pay for.

The likes of NVIDIA or A MD is important because the, those those chips go for tens of thousands of dollars.

Uh So those are kind of, you know, the big deals that are, that are coming out of Intel on the day data centers.

They also announced their new Lunar LA chip.

Uh These are for uh consumer and commercial P CS, uh laptops and desktops.

Uh And they say that this is basically a chip that will uh be able to compete with the likes of arms uh chip line.

Uh The Qualcomm Snap Dragon X Elite Line.

Uh Those chips are basically designed to go ahead and rival what Apple has managed to do.

It's Max which is uh build power and performance so long battery life and strong performance into a chip, something that was really lagging on the window side.

So uh Qualcomm went ahead and did that with their arm base chip.

And now Intel says they're doing the same thing.

And oh, by the way, A MD also announced its own new A I accelerator road map as well as chips for laptops and desktops and A IP CS.

So Dan talk to me about the customer that Indel is targeting and how that differs from NVIDIA.

As I know they talked a lot about enterprise customers here is that an area that they see a stronger use case for in terms of gaining market share from NVIDIA.

Yeah, I think really the, you know, the the hyper scalers are, you know, the Microsoft's the Google that they're all in on NVIDIA at this point, you know, they, they, they offer uh competing uh chips as well just because, you know, their, their customers want to have some kind of option when it comes to the, the types of chips that they, they may want to take advantage of when they're, they're building out their, their A I platforms.

Uh but this will allow for other companies outside of hyper scale to into generative A I at at a potentially lower price.

And I think that's something that's, that's worth uh you know, acknowledging uh it's not just the hyperscale, it's not just the Microsoft, the Googles, the Amazons, the Metas, uh the Teslas, what have you, it's, it's healthcare, it's uh you know, individual uh research institutes.

Uh it's, it's automotive industries.

Uh And so that's where we, we could see Intel really shine.

Uh They also, uh, you know, they, they're uh A I accelerator chip is gonna pair nicely with the Zion six chip.

Uh just because they'll, they'll have the, you know, the, the compatibility uh because they're from the same manufacturer.

And so I think that's something that, that Intel also has as far as market share goes.

You know, I mean, look, NVIDIA is still the odds on leader in the space.

They're, they're, they know what they, they, they're doing.

They've been doing it for a long time.

Uh, they have the software and the hardware, they have that moat that they've built up.

Uh, that's gonna take a while to, to get, uh, companies to break through.

I don't think it's necessarily means that we're going to see significant market share, uh, improvements from Intel, but they'll, they'll still, you know, gain some.

Uh, but this isn't a, you know, knocking video off off its throne kind of thing by, by a long shot.

All right, Dan, we gotta leave it there.

Thank you so much for joining us on all things.

Chips, a lot of news on your beat this week and always so we appreciate it.

Thanks so much.