The Japanese have what some might call an unusual fascination with vending machines. In fact, some of the strangest things around can be obtained therein, including live rhinoceros beetles and bread in a can. Reports note there is one vending machine for every 23 people in the country, so this shouldn’t be such a surprise. But perhaps the strangest thing recently came to light: processors from none other than chip stock Intel (NASDAQ:INTC). That revelation didn’t slow Intel down much, and shares are up nearly 1.5% in Wednesday afternoon’s trading.
The reports note that, in Japan, some of Intel’s decent processors—one customer found an Intel Core i7-8700 processor in one—are going for about $3.25. Customers place 500 yen into a Gacha-branded vending machine located outside a store called 1’s PC and get a small plastic ball, a random prize, in return. That was when one customer opened up the plastic ball and revealed a Coffee Lake processor contained therein.
There is a downside to this, though; the processors don’t always work. For instance, the i7-8700 found in the small plastic ball prompted a set of display problems when used, and Windows wouldn’t run with it in place. Further, an analysis of the chip revealed it had five cores and 10 threads. However, it’s supposed to have six cores and 12 threads, which may have inspired some of the issues in question.
Objectively Better?
Meanwhile, recent product testing suggests that, for the PC gaming market, Intel may have the edge over primary rival AMD (NASDAQ:AMD). Four key reasons underscore this unexpected point:
- AMD suffers from stability issues when used with faster random access memory (RAM)
- AMD’s advantage in power efficiency doesn’t matter much, given that most gaming PCs have good-quality fans
- Intel delivers a better, lower-cost processor
- AMD’s advantages in long-lasting sockets don’t do well with gamers who tend to replace a whole system rather than swap out processors.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 25 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 21.98% rally in its share price over the past year, the average INTC price target of $44.17 per share implies 27.18% upside potential.
Is It Wise to Allocate $1,000 Toward INTC Stock Right Now?
Before you hurry to invest in INTC, think about the following:
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