Intel INTC recently unveiled latest GPUs (dubbed Ponte Vecchio) powered by its Xe architecture at Supercomputing 2019 event held at, Denver, CO. The GPUs are aimed at accelerating complex HPC (high-performance computing) and AI workloads.
The GPUs will utilize the company’s 7nm technology and robust packaging technologies including EMIB and Foveros 3D. The new GPUs will also leverage the chipmaker’s strength in intellectual property, Compute Express Link interconnect, and high-bandwidth memory.
Intel is optimistic about its foray into the GPU market with Xe-based discrete GPUs. The company also intends to enable the new graphics cards to support its OneAPI software, which simplifies programming across its CPU, GPU, AI and FPGA accelerators.
In fact, at the event, Intel also introduced open standards-based OneAPI industry initiative to offer simple programming model to enhance development of applications involving cross-architectures including FPGAs, CPUs, GPUs, and other accelerators.
Updates on Aurora Supercomputer
Intel also announced that oneAPI initiative will complement its data-centric technical expertise to power the Aurora exascale system at Argonne National Laboratory.
Aurora will utilize Intel’s Xeon Scalable platform, the latest Xe architecture-powered GPUs, Optane DC persistent memory and other connectivity technologies.
The key capabilities of Aurora Supercomputer include support of 230 petabytes of storage and 10 petabytes of memory. The Supercomputer, slated for release in 2021, will feature six new Xe-based GPUs and two 10nm-based Xeon Scalable processors.
Intel is making every effort to make a mark in the GPU market, currently dominated by NVIDIA NVDA and Advanced Micro Devices AMD.
Per latest JPR report, NVIDIA held discrete GPU market share of 67.9% in second-quarter 2019, compared with AMD’s 32.1%. NVIDIA’s dominance in the market on account of the significantly higher functionality of its GPU cards is worth mentioning. Meanwhile, AMD’s expanding GPU portfolio catering to every price point cannot be ignored.
Although challenging environment is a concern, we believe Intel’s strength in installed base, integrated graphics card expertise and enhanced IP portfolio, hold promise.
Intel Corporation Price and Consensus
Intel Corporation price-consensus-chart | Intel Corporation Quote
Markedly, growing proliferation of AI techniques and ML and deep learning tools in data center, cloud computing; gaming, automotive, and blockchain are primarily responsible for driving GPU demand.
Moreover, Intel’s acquisition of Hyderabad, India-based Ineda Systems, a fables chip maker, in a bid to accelerate discrete GPU business initiatives, remains noteworthy.
Additionally, Intel is well poised to benefit from robust innovation in software development. Specifically, OneAPI initiative is expected to aid Intel design robust GPUs to effectively address the evolving data center demand of supporting complex HPC workloads.
Furthermore, Intel is leaving no stone unturned to strengthen presence in the supercomputing market.
Notably, Intel’s processors have been implemented in 95.6% of the world’s TOP500 supercomputers. Particularly, Xeon Scalable CPUs with embedded AI acceleration capabilities are enabled to analyze complex HPC workloads.
The chipmaker’s robust complementary solutions, including Optane DC persistent memory, make its GPUs compelling options to support data-intensive AI and HPC applications.
However, NVIDIA’s presence in supercomputing market on strength in its latest Volta- processors remains a concern. Markedly, NVIDIA GPUs feature in 125 systems out of 133 TOP500 supercomputers that utilize coprocessor or accelerator technology. Further, acquisition of high-speed interconnects and networking solutions provider, Mellanox, is likely to provide NVIDIA a competitive edge in the domain.
Zacks Rank & Another Stock to Consider
Intel carries a Zacks Rank #2 (Buy).
Another top-ranked stock in the broader technology sector worth considering is Alteryx, Inc. AYX, sporting a Zacks Rank #1 (Strong buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Alteryx is currently pegged at 39.85%.
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