![]() And you have to add the cost to set up new manufacturing lines to produce new chips because these modern tech building blocks are nothing short of marvels of engineering.īut here's the real rub: Intel just started breaking out the revenue of AXG in 2022, and so far, it's been underwhelming. Even simple chip-design work is costly and time-intensive. Some estimates by industry analysts claim Intel has already lost billions on its Accelerated Computing and Graphics Group (AXG), and I don't think that is an exaggeration. Even if Intel could design hardware that could compete (and I don't doubt it could with enough financial resources to pour into it), marketing it in such a way that consumers would take a high-end Arc GPU seriously is another story entirely.īasically, Intel might simply need to cancel Arc because the payoff could take longer than it can afford to wait. ![]() This is a space exclusively dominated by Nvidia ( NVDA 0.91%) and Advanced Micro Devices ( AMD -2.05%), and they've been at it for years. Intel was always going to have a steep uphill battle in the consumer GPU market - especially for high-end chips that appeal to serious video game hobbyists and professionals. No low-hanging fruit in computing hardware Intel axing its Arc GPUs might not be happy news for gaming enthusiasts, but it could actually be a really good thing for Intel's long-term health - as well as the health of the tech industry at large. ![]() However, the fact is that times have changed, and the competitive landscape is very different than it was a decade ago. On the contrary Intel is responsible for advancing much of the computing technology we take for granted every day, and I believe the world really needs this company to succeed. Time will tell what happens next.īefore I go into what I think all this means for the company (and the stock), I first want it known that I'm certainly not rooting against Intel. For sure, it's just a rumor, and Intel has subsequently defended its Arc gaming lineup as safe. The rumor was recently circulated by YouTube poster Moore's Law Is Dead. Rumor has it that Intel's ( INTC 0.78%) Arc lineup of video gaming GPUs (graphics processing units) is already being nixed - just a handful of years after originally being announced and long before any of these dedicated graphics cards ever really took root in the market.
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