Tuesday, October 14, 2008

Is Intel a good bet? (INTC)

In a late night interview in the states, but what would probably be considered an early morning interview in London, Bloomberg correspondent Rishaad Salamat, interviewed the senior vice-president of Europe, Middle East and Africa operations (EMEA) for Intel, Gordon Graylish. On First Word on Money, Rishaad questioned Gordon Graylish on Intel's strategy towards chip manufacturing, specifically addressing the new Atom chip. Intel product segmentation per Bloomberg Today, shows that 39.7% is focused on the Microprocessor, 13.3% on the actual chipset, motherboard, 38.3% on the mobility group (microprocessor and chipset), while 8.7% focused on other (perhaps on r and d, who knows) {this information is from Bloomberg TV} Gordon Graylish attempted to explain the 38.3% segment, which is the mobility group and explained that people that resided within the EMEA were individuals that would take more advantage of mobility as compared to their American or European counterparts. 80% of sales come from outside of the US. Rishaad pointed out that one analyst stated that they did not like the Atom, due to the fact that instead of the consumer paying $60 to $80 per chip, that they would now have the opportunity to pay $35 a chip. Graylish pointed out that Intel had structured the design and distribution of the chip to be profitable, and also pointed out that the chips would be on there Netbook devices.

Intel is a good bet. The concept of the Netbook, being that we are all looking for greater mobility in our tech devices, is a great niche for Intel to work from. Now this is not simply a reason to invest in Intel, they can remain open to many market opportunities that only there corporations can take advantage of, due to financial leverage. Most importantly, again, the Atom processor, which can be found in Asus laptops, as well as other manufacturers of Netbooks and possibly UMPC's (ultra mobile PC's) is a techinical marvel, and those companies which use this chip will be best positioned to take on the market for the on the go college student and business traveler.


http://finance.google.com/finance?client=ob&q=NASDAQ:INTC will give you a copy of the chart.
INTC is a stable company, that can be used as a mid to long term financial instrument for hold and trade. You would want to do research to see if this stock is right for you. The link above will give you the ability to start your research and check the perfomance of this top notch chip company.

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