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INTC - Intel


FrankArabia

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Any idea why Intel equity is so cheap?

Mr. Market is manic depressive.

 

The most common points against Intel is:

- PC sales are declining

- Tablets are cannibalizing PC sales; tablets and smartphones are going to take over the world

- ARM servers will erode Intel's server business

- Intel missed the boat on anticipating the rapid growth of smartphones

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Intel hires recruitment firm for CEO search. Although Paul Otellini has said his replacement as Intel's (INTC) CEO will probably be an internal hire, the company has tapped recruiting firm Spencer Stuart to help find its next top boss, sources tell Bloomberg. Then again, other sources claim that COO Brian Krzanich, CFO Stacy Smith, and software chief Renee James - named EVPs the day Intel announced Otellini would retire in May - are in the running
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I sold May covered calls on about half of my Intel position this morning at $23 this morning for $0.39. The dividend is on May 5 so you essentially get $61.5/contract or 2.7% (22.5 dividend + .39 premium) for a 4 week option. I've made this trade a few times and it has worked out well. 

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I sold May covered calls on about half of my Intel position this morning at $23 this morning for $0.39. The dividend is on May 5 so you essentially get $61.5/contract or 2.7% (22.5 dividend + .39 premium) for a 4 week option. I've made this trade a few times and it has worked out well.

 

Nice, I'll be looking to rewrite some INTC puts, which I have been doing at strike prices of 20 and 21, on the next pullback.

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Can anyone clarify briefly...how Intel can place its chips on smartphones? I assumed that given that s-phone software is written for the ARM architecture, Intel would need to become a pure fab for ARM processors and put those on mobile devices. Is that the case, or is Intel making x86 processors and putting them on smartphones? If it is the latter...how is that possible? Wouldn't you need to modify the OS to do so?

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Can anyone clarify briefly...how Intel can place its chips on smartphones? I assumed that given that s-phone software is written for the ARM architecture, Intel would need to become a pure fab for ARM processors and put those on mobile devices. Is that the case, or is Intel making x86 processors and putting them on smartphones? If it is the latter...how is that possible? Wouldn't you need to modify the OS to do so?

 

No, their mobile strategy is not licensing ARM. Intel has ported Android to x86 to run on Atom powered smartphones.

 

http://www.intel.com/content/www/us/en/smartphones/smartphones.html

http://www.engadget.com/2012/05/24/intel-posts-x86-friendly-android-4-0-image/

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Can anyone clarify briefly...how Intel can place its chips on smartphones? I assumed that given that s-phone software is written for the ARM architecture, Intel would need to become a pure fab for ARM processors and put those on mobile devices. Is that the case, or is Intel making x86 processors and putting them on smartphones? If it is the latter...how is that possible? Wouldn't you need to modify the OS to do so?

 

Operating systems are typically written in a high-level programming language such as C (*), and then compiled for different architectures such as ARM or x86. Internally, the compiler converts the source code of a programming language to some abstract representation, and then converts that representation to a specific instruction set for a specific CPU architecture. This modular approach allows compilers to easily support a new programming language or CPU architecture simply by writing a new "front-end" (how to translate source code to abstract representation) or "back-end" (how to translate abstract representation to machine code). Once you add a new front-end, you automatically have support for that language on all existing back-ends, and vice versa. Operating system developers still have to take different architectures into consideration, but porting between architectures should be relatively painless, if done properly.

 

(*) C isn't a high-level language like Python or Java for example, but it's high-level in the context of compilers and how it relates to machine code.

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That was a great explanation, I'd been under the impression that porting an OS to a new architecture was some sort of momentous shift. So a say a piece of software like an app that has been written for Android on ARM, can be ported to Android on x86 by compiling using the specific "front-end" process?

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It does take some work on Intel's part to make it work.

 

It's not just the instruction set that's different.  Intel is making an entire SoC.  The processor, graphics, wireless, and a whole number of other things go onto their SoC.  I believe things like power management work differently on Intel's SoCs than Atom SoCs.

 

Sometimes there are subtle differences in the results between different CPUs.  For example, floating point math operations may give different results on different CPUs.  Compilers may create programs that will deliver different results (due to differences in the compilers; sometimes they have bugs).  These present very minor obstacles to app developers.

 

Overall:

-It looks mostly transparent to users.  There are only some rare cases where users realize that something doesn't work because you have an Intel smartphone.  (Go read some reviews of Intel smartphones.)

-It looks mostly transparent to app developers.  There may be some rare cases where you have some bugs to fix because the software and hardware for Intel's smartphone ecosystem is a little different.

-It does take work on Intel's part.  They had to devote a team of software developers to make everything look transparent to everybody else.  For example, they had to build an emulator so that you can run ARM programs on x86 smartphones.

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Guest wellmont

intel always had amd to kick around in the processor business. now the tables have turned and intel is Qualcomm's AMD in mobile SOCs.

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Guest valueInv

intel always had amd to kick around in the processor business. now the tables have turned and intel is Qualcomm's AMD in mobile SOCs.

 

The problem is that mobile processors are priced at a fraction of desktop processors.

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Guest wellmont

intel always had amd to kick around in the processor business. now the tables have turned and intel is Qualcomm's AMD in mobile SOCs.

 

The problem is that mobile processors are priced at a fraction of desktop processors.

 

yep so it's even worse for Intel than it was for AMD. It's simply a matter of how long Intel can keep selling x86 processors. Apple and Google are key here imo. Samsung is selling a cheap chrome laptop based on ARM. I assume that's a trend in it's infancy. And apple, it seems to me is a year or two away from moving some of their laptops to their own ARM designs.

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Guest wellmont

There is no rational reason for Apple to move their laptops to ARM designs....given that Intel's new chips are going to be low power....

 

depends on cost. if there is more profit in it for apple they will drop intel as soon as they are able.

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Intel has some great products in the pipeline. I would imagine these set backs will impact their share price over the next year, but I think that will just provide an opportunity to buy them at a cheap price. Their mobile chips will be better than anything else out there by the end of 2014

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Guest valueInv

 

Intel has some great products in the pipeline. I would imagine these set backs will impact their share price over the next year, but I think that will just provide an opportunity to buy them at a cheap price. Their mobile chips will be better than anything else out there by the end of 2014

 

How do you know this?

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Guest wellmont

intel may have some good products in the pipeline. but their market position is awful. Now they have this server chip issue. they have tiny market share in mobile and tablets, which are the devices people are buying these days. And i don't see that changing in 2014. it's hard to dislodge an entrenched competitor (arm) that is not standing still either.

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@valueInv check out the analyst day web casts. They've got some really great stuff lined up. http://intelstudios.edgesuite.net/im/2013/live_im.html

 

@wellmont meh. They have definitely made some missteps in mobile, but they have nowhere to go but up in that market, and the chips they've got coming up really are better than their competitors. And since they own their own fabs they have better margins. Their new CEO is saying and doing all of the right things, like saying they are now a "market driven company" with respect to their mobile initiative, and they are selling off that misguided online tv business (hope John Malone picks that up!). And let's not forget they DOMINATE the other chip markets. Google entering the server chip market just isn't a concern. It will take them forever to get there, and I don't have faith they'll do it well. It feels very "Google Wave" to me. All that said, I think Intel is fairly valued, and I wouldn't buy until they dropped by 50% or so.

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