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Intel Expands FPGA Portfolio With High Bandwidth Memory

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Intel (INTC - Free Report) recently augmented its field programmable gate array (“FPGA”) portfolio by introducing the all new Intel Programmable Acceleration Card (“PAC”) integrated with Intel Stratix 10SX FPGA. Leveraging, Intel’s Xeon ScalableCPU, the industry’s most powerful FPGAis integrated with high bandwidth memory to accelerate workloads and keep pace with data explosion. This will provide users more memory bandwidth compared with standalone DDR memory solutions.

The combination of PCIe Gen3 and FPGAs caters to high bandwidth memory interface required for next generation training in deep learning, HPC and offers IP to manage application workloads.Intel PAC with Stratix 10 SX FPGAprovides a memory bandwidth of up to 100 gigabytes per second for streaming analytics and video transcoding along with 244 Mb of embedded memory.

The company’s PCIe-based FPGAs are able to compress and accelerate larger data movements compared with standalone FPGAs. Additionally, the integration of Intel Xeon CPUs with FPGA will boost real-time data acceleration in streaming data pipeline for drivers, application programming interfaces (APIs), and an FPGA Interface Manager.

The newly added product will expand the onboard memory pool and add more bandwidth. We believe that the launch will improve scalability, reliability, power and density requirements of future HPC deployments.

Notably, Hewlett Packard Enterprise (HPE - Free Report) will be one of the primary OEM partner to integrate Intel PAC with Stratix 10 SX FPGA into its server offering.

To Conclude

The customers are increasingly handling workloads either over the cloud, Internet of Things (“IoT”), 4G/5G wireless networks, among other emerging platforms. This calls for designing power constrained and high performance applications solutions which customized ASICs offer.

Moreover, robust adoption of FPGAs is eventually easing the migration to structured ASICs. Considering the rapid shift to structured ASICs, the company also targets to offer a cost-effective solution that automates the conversion process.

Programmable Solutions Group or PSG accounted for 3 % of total revenues in second-quarter 2018. The segment reported growth of 18% from the year-ago quarter to reach $517 million. Strength in data center and embedded products drove top-line growth.

PSG's data center segment soared roughly 140% from the year-ago quarter. Management stated that revenues from advanced FPGA products (28, 20 and 14-nm) grew approximately 70% from the year-ago quarter.

We believe that growing demand for server chips that are used in the data centers from the cloud-based service providers like Amazon.com, Alphabet and Microsoft is a key catalyst for Intel.

Zacks Rank & Other Stocks to Consider

Intel currently carries a Zacks Rank #2 (Buy).

Few other top-ranked stocks in the broader technology sector are Salesforce.com Inc (CRM - Free Report) and Aspen Technology, Inc. (AZPN - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The projected earnings growth rate (3-5 years) for Salesforce and Aspen are 25% and 16.5%, respectively.

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