|$22.060||OPTIMISTIC||NORTH AMERICAN - LARGE||No|
Almost totally exposed to the PC market. Unless you get a feeling that the company is successfully diversifying in a big way or that the PC market is coming back, don’t rush into this one. If you want exposure in the semiconductor market, he would get Taiwan semiconductor (TSM-N).
"Almost totally exposed to the PC market. Unless you get a feeling that the company is successfully diversifying in a big way or that the PC market is coming back"
These are 3 incredibly misinformed comments by a so called expert. He would have been better to say he didn't recommend but did not understand why.
1. INTC is exposed to the PC mkt in the enormous profits it makes on PCs, its domination of that market and the percent of it's profits from PCs. But they are huge, much larger than competitors in other mkts like servers.
2. diversifying.. OMG, INTC spent 4.6 Billion in the last 3 months on R&D and M&A, will spend an equal amount in the next 90 days and is committed to new chip mkts like mobile. INTC will dominate the smart phone market. How can that be? Easy. ARM designs are now in 95% of all smart phones. They don't make the chips. They get a fee from Samsung, Invidia and Qualcomm for each mobile phone chip. INTC will soon have a better chip. They are already more powerful with their version, it is just too thirsty and uses too much power. The margin advantage will be to Intel as they will design and make the chip. This is a great opportunity to buy at a PE of about 10 vs 64 for ARM. This is a great buy. Norm you missed this one.
3. The PC is not dead. There is another world called "Not North America". People in India and China cannot afford a smart phone over a PC and prefer a PC. And, even here, I phones are not about to replace work stations in offices.
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