| | | Intel’s Server Chips at Risk of ‘Fourth Wave’ of Computing, Says Jefferies
Intel's dominance of the data center is at risk as the computing industry moves to a "fourth wave," according to Jefferies & Co.'s Mark Lipacis, of which the poster child is Intel's rival, Nvidia.
Shares of Intel ( INTC) are down 68 cents, or 2%, at $33.20, in early trading, after Jefferies & Co.’s Mark Lipacis cut his rating on the stock to Underperform from Hold, and cut his price target to $29 from $38, warning that the company is the most in danger of a new wave of computing, parallel processing.
Lipacis makes the case that parallel processing computing, best exemplified by Nvidia( NVDA), on whose shares he has a Buy rating, is the fourth big changing in computing, following mini computers, PCs, and smartphones:
There Have Been 3 Tectonic Shifts in Computing. Every 15 years, an accumulation of technical innovations translates to tectonic shifts in the computing model. In the 60s the industry shifted from Mainframes to Mini-Computers, in the early 80s it shifted to PCs, and in the late 90s it shifted to a cell phone / datacenter model. Each computing model shift brought a shift in the beneficiaries: IBM in Mainframes to DEC in MiniComputers, to INTC/ MSFT in PCs, to AAPL/Samsung/INTC/MSFT in the cell phone / datacenter model. We Believe we are at the Start of the 4th Tectonic Shift now, to a parallel processing / IoT model, driven by lower memory costs, free data storage, improvements in parallel processing hardware and software, and improvements in AI technologies like neural networking, that make it easy to monetize all the data that is being stored.
http://www.barrons.com/articles/intels-server-chips-at-risk-of-fourth-wave-of-computing-says-jefferies-1499692798
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