Next month, Intel Corporation (NASDAQ:INTC) intends to begin selling graphics processors for videogamers, intending to gain a share of a profitable sector now controlled by competitors Nvidia Corporation (NVDA) and Advanced Micro Devices Inc. (AMD).
Intel in the Semiconductor Sector
Intel (NASDAQ:INTC) dominates the semiconductor sector, which is at the computational core of personal computers. The company has long since given up its position as the market leader in this space to Nvidia and AMD. Pat Gelsinger, CEO of Intel, hinted on Tuesday that the business would re-enter that market by announcing that they would introduce a graphics card for gamers on October 12th.
According to Mr. Gelsinger, the argument that Intel (NASDAQ:INTC) would make would be to gamers who are sick of paying exorbitant amounts for the quickest and most powerful graphics chips. They have recently become quite pricey, although we do not believe this to be justified. He announced that the problem would be resolved at the yearly business conference.
According to him, the prices for Intel’s cards will begin at $329. Nvidia unveiled a new generation of graphics processors last week, with prices ranging up to $1,599. Intel’s new graphics processors are not expected to compete with Nvidia’s high-end cards in terms of performance; instead, they are designed to be price-competitive with chips from earlier generations.
Intel Stock Performance
During trading on Tuesday, the shares of Intel stock (NASDAQ:INTC) saw a decline of 0.3%. Nvidia’s stock ended the day with a gain of 1.5%. AMD increased as well.
In recent years, the market for graphics chips has expanded rapidly. This can be attributed to: first, an increase in the popularity of video games during the pandemic; and second, the ability of graphics chips to perform well in artificial intelligence calculations, which are becoming increasingly popular.
The most recent quarter’s sales of video gaming processors for Nvidia were close to $2 billion, while AMD’s video gaming business brought in $1.7 billion. In recent months, the market subdued due to economic headwinds and instability in consumer spending.
Although Intel (NASDAQ:INTC) has previously attempted to produce graphics processors, it has been more than a decade since the company’s products were in the research and development stage.
In the most recent few years, the company’s market worth has experienced a steep decline. As a result of its popularity among gamers and the expanding market for AI computing, Nvidia has become the most valuable chip manufacturer in the United States.
After several years, Intel has resumed its development of graphics processing units. The earliest items to come out of that endeavor were not geared toward regular customers but rather big data centers and supercomputers. The high-performance graphics processors manufactured by Intel may be found in the supercomputer Aurora, located at the Argonne National Laboratory in Illinois.
On Tuesday, in addition to unveiling its new graphics cards, Intel also introduced a new generation of the central processing units (CPUs) that it manufactures for personal computers.
After falling behind Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. of South Korea in the race to produce the most advanced chips, Mr. Gelsinger has been working hard to restore Intel’s former glory. This includes getting the business to produce the most innovative processors again. On Tuesday, he stated that such initiatives were either ahead of time or on track with the schedule.
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Author Marianna Vilchez 
