HP's Power Play Could Push Intel Stock Higher

Data centers are changing, and Hewlett-Packard (NYSE: HPQ  ) is changing with them. Earlier this week, the company touted a new system architecture called "Moonshot" for handling what are known as "hyperscale" environments.

Think of the extraordinary volume of bits and bytes generated by social networks and you'll get a sense of the problem, and why HP thinks that solving it is on the order of a moonshot.

Interestingly, "Moonshot" is based on the Atom low-power architecture espoused by Intel (NASDAQ: INTC  ) . Shares of peer ARM Holdings (NASDAQ: ARMH  ) , which is known for its efficient chips, fell about 4% on the news as Intel stock rallied more than 6%.

Expect further gains, says says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova. The changing needs of data center operators is a huge opportunity for Intel, which has industry-leading expertise in developing server chips.

Are you more bullish on Intel's prospects after seeing this news? What about HP? Please watch this short video to get Tim's full take, and then leave a comment to let us know whether you'd buy or sell Intel stock now, and why.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.


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