Intel's past is its own worst enemy
There's just no telling when Wall Street might see the value in this chip-maker.
Jim the consensus is $.53. Intel owns 95% of the $55 billion desktop, laptop and server markets where chipsets are greater than $100. They'll enter the $15 billion smart phone and tablet chipset market where chipsets are $15-30 when their Atom processor is ready in mid-2011. Wall Street is wrong.
The more we demand video content on our mobile devices. The less chips like the ARM will be enough. The only possible solution will be the same path as we have seen with PC's. Multi core CPU's and better graphics. Apple seems to have gone the path of using a ARM chip that has been customized. But as we have seen Apple do. They have limited its video to what it deemed capable of. So Flash content from Adobe was considered too much for it.
I think the Atom lacks really good multi tasking abilities which small devices like smart phones have issue doing too. The drive right now is for a chipset that won't be too hard on battery life. Until we come up with better batteries I think our devices will have to choose between CPU performance or battery life.
I give 2- 5 years before ARM chips aren't enough in "smart phones" and mobile processors take over. People will expect more and more from their phones and push them into mobile processing. Something like a tablet but with the capacity for serious game play with some battery that needs charging like once a week for an hour. Why do you think AMD didn't get into the mix? Although, I do wonder if it had something to do with Dirks exit?
The only alternative I see is fiber optic. I believe Moore's law in effect and the Nanometer sizing (on the die) is nearing the size of safe heat dissipation. Even multi-core processors have a limit to size, correct?
Jim, I checked my file and you were recommending this highly 6 months ago because of the dividend. At the least that is still a plus.
The company is a powerhouse in many respects and a pretty safe place to invest. Don't expect any wild surprises ! I see the after hours volume up double normal and shares are up!
Jim, too bad you're wrong. Intel posted $.59 EPS and revenue of $11.5 billion. I know all the analyst will say yes but MSFT says they'll use the ARM and QCOM is selling $10b of smartphone chips for $16.30 set. Who cares, Intel will downsize the CICS (complex instruction set processors) and hit QCOM head-on once the smart phones and tablets need full blown processors. Intel only needs to get a billion a quarter over the next one to two years from that $15 billion market to make QCOM shutter.
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