So you do not get it yet? Neither does Wall Street.
Of course I do not have to tell most of you how stupid most of the so called experts at Wall Street are. They would not know a good investment if it bit them in their you know whats.
But to my point. I am long AMD and Intel. And there are many many reasons why this is so so.
But before I say what they are I will quickly state the coming bearish views against the two X86 chip makers. 1) Computer sales have peaked. 2) Phones using other chips 3) Chips are now a commodity 4) Arm 5) No new markets for Intel 6) No new products for Intel
My Replies 1) Intel CPU sales have been increasing and its net profits have as well. Intel made a record profit in Q2 ands will surpass it in Q3 and again in Q4. Looks like growth to me. 2)Intel has virtually NO market share in the Phone chip markets now. It has produced competitive chips and acquired the ability to push the attack into the Phone market. It will almost certainly gain at least some of the market and it might end up dominating it. 3)Intel just set a record for margins. People who say it is a commodity ignore the margin of 68%. A commodity has a margin of 5% or less. 4) Intel has the phone chip. it of course will take share. Nokia and the others are willing and eager to get an Intel CPU into their phones. 5)Phones, Cars, Hand held devices other than phones, Home security products, Healthcare devices. These markets combined are much larger than the just Computer market. 6) Phone chips, software, and all the rest are coming.