Intel - The Semicon Leader

Posted by Kris | Sunday, June 22, 2008 | | 0 comments »

Intel is one of my favourite Nasdaq stocks beside Apple. Above is a promoter showcasing the latest Intel product codenamed Intel Atom. Atom is widely believed to be the lowest power consuming CPU ever designed since the Pentium chip family were created. Intel is largely banking on the new fast growing segment of hand held internet devices and netbooks for its future revenue.

Intel stock price only started leaping upwards nearing the final stages of the bull run. Gone were the heydays when the stock price went up to reach the USD100 during the tech bubble. Nevertheless, Intel is still very strong financially and technically with its closest rival , AMD struggling to survive in the cutthroat chip business. Look at AMD's stock price now and you will know why. Because of Intel's untouchable dominance in the chip industry, its legal department is kept busy defending off anti-trust lawsuits filed by AMD in various countries for the obvious reasons. The latest anti-trust case happened in Korea where Intel was fined in a non-court case judgement.

At the current economic condition, even a giant can be humbled. Tech companies should not be considered as a defensive sector even if the company's financial sheet is very strong. Last time i check , Intel has around ~12 BILLION in CASH reserves. Its revenues is still largely driven by the world's largest consumer, namely the United States Of America but its presences in Asia is growing rapidly, thus providing it with a steady stream of side income in the future if US tanks.

Conclusion, if Intel stocks really tanks a lot in the coming months, it is a good long term buy. But be very prepared to hold on it for a very long long time (as evident that it only moved towards the end of the current bull run) unless another tech bubble is forming. Currently , the tech sector is showing very strong endurance amidst a not-yet-over sub-prime crisis and rising crude oil price.

P.S : I note that Intel tends to showcase its product in Taiwan. I guess it has to do with the concentration of international semiconductor foundries companies in Taiwan. Or it had to do with pretty Taiwanese girls. :)

Next write-up will be on APPLE where in any important showcase, you will see its charismatic and aggressive leader, Mr. Steve Job as the centerpiece. You will ALWAYS see his face in major APPLE conferences similar to AirAsia Datuk Tony Fernandez. Hard to miss him really as he always will appear in very casual outfit ( jeans and a black T-Shirt. Typical engineer outlook i guess.) .

Disclaimer : Above info does not warrant a buy/sell recommendation.