Articles for Intel

Intel’s Fair Value is $30 With a Shifting PC Market & New Chips

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Monday, January 30th, 2012 by Trefis Team

Intel (NASDAQ:INTC) had a record 2011 registering strong revenue growth while its main rival AMD (NYSE:AMD) struggled. This year will likely be another eventful one for the company as it innovates further, pushes ahead in the mobile market and fights greater competition. Although this year may not be as stellar as 2011, we believe that Intel has the capacity to do well despite certain threats, and the stock has potential to gain another 10%-15% based on its fair value. Intel has already made big strides in terms of innovation when it launched Sandy Bridge APUs in 2011 that made integrated graphics from other players such as Nvidia (NASDAQ:NVDA) obsolete.

Our price estimate for Intel stands at $30.37, implying a premium of more than 10% to the market price. We stay positive as we believe that the pricing support from chip innovation and growth in PC shipments in emerging markets will help.

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Dogs of the Dow Jones Industrial Average As Of January 2012

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Thursday, January 26th, 2012 by Trefis Team
Dogs of the Dow Jones by Dividend Yield – Stock, Capital, Investment. Here is an updated sheet of the 10 best Dogs of the Dow. Such stocks have the lowest expected price to earnings ratio and highest dividend yield within the Dow Jones Index. The 10 cheapest stocks of the Dow Jones have an average dividend yield of 3.92 percent and a forward price to earnings ratio of 12.18. The average price to book ratio amounts to 2.46 and price to sales ratio is 1.86. Exactly 40 percent of the stocks have a dividend yield of more than 4 percent. Compared to the results from the previous month, nothing has changed. The cheapest stocks in terms of forward price to earnings are Pfizer (PFE) and Merck (MRK).

Sector Roadmap For Best & Worst Stocks and Funds

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Thursday, January 26th, 2012 by Trefis Team

After a har­row­ing 2011, mar­kets and investors are a lit­tle jit­tery. No one expects the super high cor­re­la­tions between stocks to per­sist. At some point, good old fash­ioned stock-picking and the rig­or­ous research that dri­ves it will be back in favor. For those investors inter­ested in rig­or­ous research now, I offer my roadmap to the best and worst stocks and funds in the mar­ket by sec­tor for 1Q12. The full sec­tor roadmap report is here.

The sec­tors with the most Attractive-or-better-rated stocks are Con­sumer Sta­ples and Infor­ma­tion Tech­nol­ogy. Per Fig­ure 1, these sec­tors get an Attrac­tive rat­ing while the sec­tors with the least Attractive-or-better-rated stocks, Finan­cials and Tele­com, get a Dan­ger­ous rat­ing. Sec­tor rat­ings are based on aggre­ga­tion of my rat­ings for each of the stocks in the sec­tor. This is the same method­ol­ogy behind my ETF and mutual fund ratings. Read More »

Intel Can Drive Growth by Selling Fancier Chips in Emerging Markets

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Wednesday, January 25th, 2012 by Trefis Team

Intel (NASDAQ:INTC) released its Q4 and full year 2011 earnings last week, and the significant growth in average selling prices was one of the prime factors behind the impressive growth. The company expects high single digit growth in revenues in 2012 despite the fact that popularity of tablets is affecting PC sales and economic recovery remains uncertain. Moreover ARM-based players will try to make a dent with launch of Microsoft’s (NASDAQ:MSFT) ARM-compatible Windows operating system and AMD (NYSE:AMD) will look to improve its low share under new management.

Despite the above, Intel will look to grow its revenues aided by expected growth in PC shipments and modest growth in average selling prices. What can support the latter? It could be the launch of Ivy Bridge & the drive towards a richer mix in emerging markets. But there also exists risk in terms of Intel allowing subsidies for pushing ultrabooks into the market.

Our price estimate for Intel stands at $30.37, implying a premium of more than 10% to the market price.

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Intel Still Outshines Peers But Needs to Watch the Pocketbook

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Tuesday, January 24th, 2012 by Trefis Team

Intel (NASDAQ:INTC) released its Q4 and full year 2011 earnings last week, finishing a record year with almost $54 billion in revenues despite economic headwinds and threat of cannibalization of PCs from tablets. While Atom performed poorly due to decline in netbook sales, Intel’s traditional PC and server business continued its growth despite weakness in developed markets. Its is perhaps this confidence as well as the threat of ARM-based players such as Nvidia (NASDAQ:NVDA) entering the PC market soon, that is encouraging Intel to further increase its capital spending in 2012. Intel will spend close to $12.5 billion in 2012 on property and equipment, its highest ever capital expenditure for a single year. Intel already has lead against AMD (NYSE:AMD) in terms of process technology and wants to maintain that.

Our price estimate for Intel stands at $30.37, implying a premium of more than 10% to the market price.

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Intel Earnings Preview: What We’re Watching Thursday

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Wednesday, January 18th, 2012 by Trefis Team

Intel (NASDAQ:INTC) will release its Q4 2011 and full-year results on Thursday, Jan 19th. The company’s first three quarters were solid in terms of revenue growth and as a result, its stock gained about 20% despite macro headwinds and some unfavorable PC market trends in developed countries. Q4 could be slightly different and below we take a look at few key aspects that investors should keep an eye on. Intel competes with AMD (NYSE:AMD) in the PC microprocessor business and with companies such as Qualcomm (NASDAQ:QCOM) and Nvidia (NASDAQ:NVDA) in the mobile microprocessor market.

Our price estimate for Intel stands at $29, implying a premium of about 15% to the market price.

See our complete analysis for Intel

Intel May Feel Pressure Of Macro PC Trends

In the previous three quarters, Intel benefited from the growing PC market in emerging countries (See article Intel Defies PC Market Trends, Revising Estimate to $29) and reaped profits by selling the higher-priced Sandy Bridge processors. The company saw low to high-double digit growth in several developing countries, driven by higher unit sales as well as improved pricing mix.

However, unlike the third quarter, Q4 saw a global decline in PC sales by about 1.4%. We believe that the positive results that Intel saw in previous quarters may be moderated due to this decline. It appears that even healthy growth in emerging markets could not compensate for the decline in PC sales in developed markets such as the U.S. and Europe. Furthermore Intel’s decision to cut Sandy Bridge prices in December is likely to have a slight impact on revenues and margins.

Hard Disk Shortage & Ultrabook  Impact Will Be Limited

The hard disk shortage that resulted from flooding in Thailand in October 2011 is likely to have a modest impact on Intel’s Q4 results. Many of the hard disks to be shipped in Q4 were meant to be utilized for PC inventory build-up for future sales, so the impact could be more visible in the first half of 2012.

Furthermore, it appears that Intel’s launch of the Ultrabook did not garner much attention during the holiday season. The company is likely to spend more on advertising and promoting Ultrabooks in order to fight off cannibalization from tablets in 2012. Therefore we expect the impact of Ultrabooks on Intel’s notebook PC microprocessor sales in Q4 2011 to be insignificant.

Understand How a Company’s Products Impact its Stock Price at Trefis

Buy Intel: A Stock For All Seasons

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Wednesday, January 18th, 2012 by Trefis Team

In an increas­ingly chal­leng­ing mar­ket, Intel (NASDAQ:INTC) is one of the safest invest­ments with com­pelling upside poten­tial. That’s right, investors get to have their cake and eat it too – at least for now. As one of January’s Most Attrac­tive stocks, INTC offers the rare com­bi­na­tion of strong cash flow growth with a remark­ably cheap val­u­a­tion. Investors were rewarded hand­somely over the last 9 months after I rec­om­mended buy­ing the stock at under $21 (see “Back Up the Truck”). Read More »

Intel in 2012: Leads the Push for Ultrabooks

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Wednesday, January 11th, 2012 by Trefis Team

When Apple (NASDAQ:AAPL) launched the iPhone in 2007, it revolutionized the smartphone industry. Google (NASDAQ:GOOG) followed suit, and the duo now leads the smartphone market. Similarly, when Apple launched the iPad in 2010, it reinvented the tablet and now dominates the tablet market, with Google coming a distant second. Microsoft (NASDAQ:MSFT) entered the smartphone game too late, launching Windows Phone just around a year ago. It hasn’t even entered the tablet market, as Windows 8 is still months away from launch. The increasing popularity of tablets has led to a decline in the sales growth of PCs and notebooks, the largest markets that Microsoft operated in. Going forward, the growth in overall PC sales is expected to be almost flat, while notebook sales are expected to be slow, as more consumers buy a tablet instead of a notebook. The two companies which could be impacted most by this change in consumer preferences are Microsoft and Intel (NASDAQ:INTC).

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Intel’s 2011: Extends Market Leadership Amid Challenges

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Monday, January 9th, 2012 by Trefis Team

Intel (NASDAQ:INTC) had a solid year last year as the company continued to report record quarterly results and the stock gained approximately 20% despite macro headwinds and some unfavorable PC market trends in developed countries. The chip giant did not let its rival AMD (NYSE:AMD) gain ground and invested further in the development of more competitive chips for the mobile market, which is currently dominated by Qualcomm (NASDAQ:QCOM).

Our price estimate for Intel stands at $29, implying a premium of about 15% to the market price.

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Intel’s Good for $29, New Atom Chip Won’t Move the Needle Though

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Tuesday, January 3rd, 2012 by Trefis Team

Intel (NASDAQ:INTC) has begun shipping its third generation Atom processors, primarily intended for use in low-powered mobile devices such as netbooks. Intel states that the new processor will deliver a significantly higher graphics performance and has dedicated media engine to enable 1080p HD playback. From a strategic perspective, the move is expected as the company will continue to intensify its efforts to get hold of growing mobile computing device market, which is currently dominated by Qualcomm (NASDAQ:QCOM), Texas Instruments (NYSE:TXN) and Nvidia (NASDAQ:NVDA). From value perspective, it is insignificant.

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