Is This a Game Changer for INTC Stock, Too?
Intel Corporation (NASDAQ: INTC) stock appears to be among the winners in the race to developing the most advanced and immersive virtual reality (VR) platform with its “Project Alloy.”
The tech giant’s CEO Brian Krzanich unveiled the platform during the 2016 “Intel Developer Forum” (IDF16) in San Francisco on Tuesday. (Source: “Inventing the Future: The Power of a Smart and Connected World,” IDF16, last accessed August 16, 2016.)
During the event, Krzanich noted that, today, the classic VR systems are composed of a headset with a cord to plug into your personal computer (PC), plus hand controllers and standing poles with sensors to know where you are in the room, and additional sensors.
Krzanich said you need a dedicated space to be able to enjoy the existing VR systems, and being tied up or confined in one space is not really a virtual world. He pointed out that Project Alloy will dramatically change the next versions of VR systems.
Project Alloy: An All-in-One VR platform
Project Alloy is an all-in-one VR platform designed to offer a more immersive and unique VR experience without the need for unnecessary components attached to the headset or head-mounted display (HMD).
According to Krzanich, Project Alloy is a complete, cordless, battery-powered system integrated with computing, graphics, and 3D cameras and sensors necessary to provide you with a great VR experience. It is powered by Intel “RealSense” motion tracking technology that allows the platform to merge the real world with the virtual world.
Krzanich, together with Craig Raymond, a senior technical marketing engineer for “Corporate Demonstration” at Intel Corporation, showed off the capabilities of Project Alloy on stage at IDF16. He showed off a cordless HMD powered by Alloy.
Raymond wore a cordless HMD powered by the Alloy platform. He showed that the technology allowed him to see Krzanich coming into his virtual world and avoid running into him or other objects in the real world. He also used his hands as natural controllers to interact with virtual elements. He used a real dollar bill to trim a block of gold in the virtual world.
According to Krzanich, Project Alloy offers users a “merged reality” experience. He said, “We believe the capabilities of Alloy and what it introduces is significant. It gives the opportunity to merge the physical and virtual world together.”
Intel Corporation Could Dominate the VR industry
With Project Alloy, Intel Corporation laid down a solid foundation in the fast-growing VR industry. The tech giant also demonstrated that it could dominate the industry because its platform offers advanced and powerful features.
INTC stock will surely benefit from Project Alloy, which offers users new experiences including mobility in six degrees, the ability to use one’s hands as controllers, no need for external sensors, and the ability to merge the virtual and physical worlds together. Additionally, the platform enables users to avoid obstacles in the real world and prevent accidents from happening.
VR enthusiasts are hoping for these features, which are definitely strong selling points for any headset or HMD powered by Project Alloy.
Intel also announced that it is collaborating with Microsoft Corporation (NASDAQ: MSFT) on mixed reality to boost the VR industry. Microsoft will update all “Windows 10” PCs to support VR headsets/HMDs that could run the Microsoft Windows “Holographic” platform combined with the Alloy platform, offering a fully immersive experience.
Additionally, Intel said it would open-source the Alloy hardware and RealSense application program interface (API) in the second half of 2017. Intel’s developers and partners will have access to its build sheets, allowing them to develop their products from the Alloy design.
Developers will have the opportunity to partner with any manufacturer to produce a world-class VR ecosystem using the Alloy hardware combined with Windows Holographic.
Project Alloy: A Lifesaver for the PC industry
There is no doubt that Project Alloy is a game changer for the VR industry. Its combination with Microsoft’s Holographic platform could also save the weakening PC industry.
Digi-Capital predicted that augmented reality (AR) and VR could disrupt the technology industry soon. The research firm estimated that AR/VR could achieve $120.0 billion in revenue by 2020. AR could be bigger, generating $90.0 billion while VR generates $30.0 billion. (Source: “Augmented/Virtual Reality revenue forecast revised to hit $120 billion by 2020,” Digi-Capital , last accessed August 16, 2016.)
Bear in mind that VR ecosystems require high-performance PCs to deliver a great user experience. Therefore, the VR industry could create a strong demand for powerful microprocessors such as the Intel “Core i7 processor Extreme Edition.”
The Bottom Line for INTC Stock
In other words, Intel stock investors should view Project Alloy as a huge growth driver for Intel Corporation in the future. There is a great possibility for INTC stock to trade at higher levels over the long term.
Intel stock gained more than 18% in value over the past six months and more than 20% over the past year. INTC stock closed at $34.97 per share on Thursday, August 18.