Intel (INTC) to power Turkey’s e-commerce platform for SMEs

intel company INTC recently collaborated with Hepsiburada HEPS launches an e-commerce platform for small and medium-sized enterprises (SMEs) in Turkey. Called DigitalSME, the program is expected to accelerate the digital transformation of local SMEs and boost the region’s overall economic growth.

Founded in Istanbul in 2000, Hepsiburada is one of the leading e-commerce technology companies in Turkey and is said to be the fastest growing e-commerce operator in Europe. The company’s name translates into English as “everything here” or “everything is here” with over 43 million products available on its platform. Products are offered through a “super app” that can offer everything from groceries, clothing, beauty products, auto supplies and electronics to flights and same-day payment services, via a digital wallet integrated called Hepsipay. Hepsiburada has also pre-integrated an installment payment service into its platform, as well as a free and transparent return policy involving an ultra-efficient logistics network.

Hepsiburada now aims to harness Intel’s technological prowess to help SMBs grow their e-commerce platform and grow their digital business through the DigitalSME support program. Participants of this program will be entitled to discounted hardware and software tools, as well as the training required for effective advertising methods, improving brand awareness, maximizing social media coverage and operational advice to improve customer satisfaction. Intel will offer a 10% discount on its 11th generation products and additional discounts on printers, network, and anti-virus software. In addition, SMEs will also benefit from free training for HepsiAd – Hepsiburada’s advertising platform – and a grant of 1,000 Turkish liras.

Intel is betting big on the IoT business and investing heavily to strengthen its presence in the market. Where previously the focus was on making the best computer chips and generating industry-leading margins, the company now prefers to focus on a product line targeting different market segments. Management believes that the high-end business in more developed economies continues to grow, but the new strategy should help it enter many other device categories, where Intel products will continue to enjoy a premium based on performance and cost of ownership.

However, Intel is seeing increased competition in the server, storage and networking markets. Additionally, the delay in chips based on the 7nm process is a major concern. The company detected a faulty mode in the 7nm process, which caused performance degradation. Notably, Intel’s chips use in-house designed process technologies. Intel expects the data center GPU design, Ponte Vecchio, to be released later this year. The chipmaker now expects initial production deliveries of the first Intel-based 7nm customer processor in late 2022 or early 2023. This, in turn, should lead to price pressure and limit the expansion of short-term margins. In such a scenario, collaboration with Hepsiburada’s e-commerce platform should help expand its presence in emerging markets like Turkey.

The stock has lost 6% over the past year against growth of 49.4% for the sector. Nonetheless, we remain impressed with the inherent growth potential of this Zacks Rank #4 (Sell) title.

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A top-ranked stock in the industry is STMicroelectronics SA STM, sporting a Zacks rank #1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

Over the past year, STMicroelectronics has gained a modest 21.1%. Current-year earnings estimates for the stock are up 14% over the past year, while next-year earnings estimates are up 34.3%. STM forecasts long-term earnings growth of 5% and has recorded an average surprise of 3.4% over the past four quarters.

NVIDIA Corporation NVDA, sporting a Zacks Rank #1, is another solid choice for investors. It has recorded a 7.7% earnings surprise, on average, over the past four quarters and has a long-term growth expectation of 19.2%. Current-year earnings estimates for NVIDIA are up 48.8% since January 2021, while next-year earnings estimates are up 54.1%.

Over the past year, the stock has gained a solid 106.9%. NVIDIA is gaining a decent market share among gaming service providers. The strong lineup of advanced graphics cards has made it one of the preferred graphics card vendors for PC makers. A surge in PC gamers, esports gamers, and higher spending on gaming GPUs are key catalysts. Additionally, NVIDIA’s Turing GPU and its real-time ray tracing technology are seeing massive adoption.

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