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HP's Power Play Could Push Intel Stock Higher

By Tim Beyers and Erin Miller - Apr 10, 2013 at 6:30PM

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New "Moonshot" server promises ARM-like power savings.

Data centers are changing, and Hewlett-Packard (HPQ 1.18%) 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 (INTC 0.84%). Shares of peer ARM Holdings (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.

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Stocks Mentioned

Intel Corporation Stock Quote
Intel Corporation
INTC
$42.00 (0.84%) $0.35
HP Inc. Stock Quote
HP Inc.
HPQ
$35.06 (1.18%) $0.41
ARM Holdings plc Stock Quote
ARM Holdings plc
ARMH

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