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ARMagedon: New Chip Could Spell Disaster for OG Tech Company

November 19, 2021
BY Paul Reid

If you haven’t been following computer chip innovations over 2021, there’s a game-changer that will likely put one of the four big brand tech companies in the grave much sooner than anyone could have expected.

NVIDIA’s $40 billion acquisition of UK chip designer ARM has been echoing in the halls of tech, finance, and gaming these last few weeks… and for good reason. ARM is now considered to be producing the most powerful chip ever made, with faster performance, better heat management, and longer battery life. That’s not just a hyped opinion, and just about every electronics company is scrambling to get a piece of the innovation.

  • The Swiss national super computing center will build the world’s fastest supercomputer for AI, and ARM technology will be the driving force.
  • Amazon’s AWS Graviton Servers are now in the hands of NVIDIA’s ARM-based chip for their new gaming service.
  • NVIDIA is joining the laptop and PC gaming industry and they’re doing it with ARM-based media attack chips.
  • Mediatek, the world’s largest SOC maker, is working with NVDIA to create a reference system and SDK to produce PCs and notebooks. 
  • NVIDIA plans to make their own ARM-based CPU for future data centers. They’re calling it Project Grace. 
  • Microsoft announced plans for ARM-based surface PCs and an ARM-based version of windows.
  • Jarvis will run on NVIDEA’s ARM-based tech.
  • The Hyperion Smart Car platform will run on the ARM-based chip.
  • Macbooks with ARM-Based M1 chips are out performing previous Mac and Windows machines.

NVIDIA, Apple, even Microsoft, it seems everyone is leveraging the power and performance of the ARM chip, which spells disaster for one company.

Inside Intel

For many years, Intel dominated the CPU market share until AMD appeared and gave competition. The chip battle has raged for over a decade with neither company getting the upper hand. But NVIDIA is now ARMed and dangerous and the future of the OG chip king is looking shaky. 

Most concerning for INTC investors is that Intel currently has no plans to move away from x86 technology. With no new releases in the calendar or groundbreaking development in the near future, the already declining stock has very little tools to reverse the fall. This may be the start of the end for this iconic computer company that helped change the world as we know it.

Technical outlook for INTC (Intel) 

The Intel stock has been trading for a long time between the demand area of ​​$45-$43 and the supply area ​​$68.32-$65.10, as seen on a weekly chart below, (from March 22,2020 to Nov 19, 2021) Right now, it still seems unlcear as to which way it will go.

Weekly chart showing for INTC from March 22, 2020 to November 18, 2021.

Daily time frame chart showing INTC (From Oct 22, 2022 to Nov 11, 2022)

INTC stock is starting to move into a newly born price channel after a sizeable gap, which will progress in one of two likely scenarios.

Bearish scenario

If the price breaks the lower rib of the channel and continues to fall, and then we might see INTC stock prices heading for the demand area of $43-$45.

Bullish scenario

Any strong price action such as a reversal candlestick or a volume boost may push INTC to the upside trend, to go to the upper side of the channel.

Trading Tech Stocks

Tech stocks in general have has a very prosperous time since the beginning of the pandemic, and while fears of chip shortages have caused so volatility, the outlook still looks sunny for the industry as a whole. However, tech traders everywhere are taking a front-row seat to what may be the start of the end for this iconic computer company that helped change the world as we know it. 

Will ARM continue to boost NVDA, and will INTC start a steady decline into oblivion? Open up the Exness Web Terminal, add these two stocks to your watch list, and start following.

 

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