I feel like Intel (INTC) has plenty of room to improve over the coming months, and perhaps over the next year or two. What are your feelings on the company? I doubt their dividend will increase too much over the next few months, but that's fine with me as long as the capital gains come. I know analysts are mixed on how much more room there is for growth with INTC.
Not really my style. I've largely gotten away from the old tech giants and moved more towards the young, hungry lions. Apple is one exception, but it's not really the same company it was a decade ago IMO.
Intel has a lot of work ahead of them. Lest be honest with the reality of the brand struggling a little bit. In a market competing with Apple and then other companies outside of American soil, they have their work cut out for them. Now, they have the chance to improve and take advantage of the promotion for the upcoming holiday season. This will in turn improve their capital gains and position on the stock exchange but realistically it's going to be a struggle.
Doesn't Apple have intel processors inside? Mine is a core i5, Intel; I also believe that they are in most PCs. That said, they need to diversify. My feeling on it is that I don't have the capital to buy enough shares of Apple to own enough of them to make a difference, and I don't feel strongly enough about Intel's innovation to invest heavily in them either. Their last gamble with convertible laptops seems to have fizzled out.
Intel is currently looking to get into the mobile sector to chase more profits. However, most smartphones run on Qualcomm's chipsets, and that won't change anytime soon unless Intel makes a groundbreaking product. If they can get into more mobile phones, then Intel has a good shot at noticeable stock growth. I'm taking a gamble on them, but I'm not sure if they have it in them to succeed on that front.
Intel is in a great position now but it already has most of the market. If AMD's new architecture in 2016 can at least match their performance, it's going to eat into their market share on the high end. Mobile is something we really need to look at. If more chips are cheaper mobile chips, it will again eat away at higher margin products like core. And if AMD can compete at the server level, that will put price pressure on Intel's processors. So my thoughts are that this stock will remain solid (but has little room for more growth unless they can squeeze greater margins) for 2-3 years but could be in trouble after that. If they can get 14nm at high yields next year, they should continue to increase their profits through higher margins.
AMD has always tried to angle itself as the cheaper alternative to Intel but to me it's a "You never get fired for buying IBM/Cisco" situation. Intel trying to get into the mobile market does worry me as Microsoft has tried to do the exact same thing and look at how well that has worked for them. Intel is better off staying the more expensive and better running choice. And Apple does indeed run Intel processors at least in their iPads.
They're moving in pretty late into the mobile space (smartphones / tablets). PC sales haven't been so hot lately and for the most part, there's little reason to upgrade nowadays. Intel is coming out with their new line soon though, but it's hard to say how much of an impact will have. Overall, they're still a reasonable stable stock for dividend yield, but I'm not so sure on growth.
As long as Intel keeps their process ahead of the competition, they can really get somewhere in mobile. x86 isn't yet as power efficient as ARM but a superior process and improved design can knock ARM out. iPads use Apple's own custom ARM core design. Laptops/Desktops/Workstations run Intel. Tablets/phones run on ARM (iOS), and everything else runs on x86 from Intel (Mac OS X).
If Intel does break into the smartphone and lower-end tablet market, then there is tons of potential for the company. These segments are growing, although the smartphone market is becoming limited because a handful of major companies continue to dominate. I think Intel can innovate something that beats the competition, but it has to accomplish that feat sooner rather than later to see its stock rise much higher.
