Currently using an NUC i5 8th gen. The Intel integrated graphics hardware transcoding seems to work fine on Jellyfin clients. It so far only fails inside Chromium browsers. Everything else plays fine either as direct play or transcoding.
Setting it up isn't as simple as Plex but got it running with a little tinkering. On the client side you just need to make sure the app is set to using an internal media player, on Android at least the default is to use the web player, change to integrated player and it works smooth.
Couldn't get it working on an AMD integrated GPU though which is a shame because my AMD Ryzen is a lot more powerful than an i5.