They blew it on Apple again.
The idiots cannot see the breakout coming for Intel based upon .14nm chips next year.
SO--Phones--It has always been about phones and Tablets. The so calles experts, the ones who blew it yesterday on Apple, think that Intel is forever out of these markets because Apple and Samsung, giants today do not use Intel CPUs in these areas. Yet, they do read the Intel information on the new Intel break through into Trigate technology. They do understand that the benchmarks now show Intel's 32nm phone chips to be top of the end in performance. They see that Intel, when it releases the .22nm phone chips this fall, will be far ahead in performance while doing very well in battery life.
So what is it they are waiting for to buy Intel? They will buy it after Intel's revenues explode and NOT before. They will buy Intel after Intel wins more and more phones and tablet but not before. They will buy Intel after Apple and Samsung announce that they plan to use Intel---.14nm phone and tablet chips, yety not before.
They saw the Intel chip leader saying that the others who make chips will not be able to keep up. They do not believe yet. I mean ARM, Qualcom and others all say they will stay in front so who are these investment nuts to believe. I mean they are clueless so they do not know.
Intel to 40 before Christmas.
Breakout to over 100 in late 2013.
Apple and Samsung will use Intel chips in phones and tablets before 2014.
let's not forget that deal today with CRAY which IMO they are going after military contracts, CRAY up 20% on the news but INTC got what they wanted from CRAY for 140 million which is pocket change for them and a possible takeout of CRAY and there
super computers. JMHO
If Intel does get into smartphone market in a big way as they say they will, Intel will be rewarded the same type of PE enjoyed by companies like Qualcomm. Suddenly, nobody can deny that Intel will enjoy the higher growth rates of mobil phones.
Qualcomm currently enjoys a trailing PE of 25.
Maybe Intel will go back to a PE of 20 like they've done so many times before.
Of course Intel will demonstrate their 20% or more growth rates in the next 3 years.
So for 2012, we will see EPS of about $3.
And thanks to a new huge stream of revenue from smartphones, in 2013, we will see EPS of about $3.75.
And the huge data needed to support the needs of the much more performance type smart phones, will require alot more investments in the IT infrastructure through servers.
This will allow Intel to see EPS grow to about $4.5 in 2014.
A PE of 20 will be easily rewarded to Intel stock which could send the stock above $90 a share by that time.
And Intel can achieve that type of growth with the huge leads they have over the competition in technology. Nobody can say that they can't at least do that at this time.
> If Intel does get into smartphone market in a big way as they say they will, Intel will
> be rewarded the same type of PE enjoyed by companies like Qualcomm.
Intel not getting into Smartphone is probably one reason for low PE - I agree on this one.
However, I think there is another very important reason for low PE - that Intel can lose market share in the Windows market.
Now that we are seeing more reviews that Windows RT (Windows-on-ARM) is likely to hit huge roadblocks, the second concern (Intel losing Windows marketshare) will be mitigated as well. But this will happen over time with clear market evidence and numbers or when Microsoft starts seeing these issues and begins to dilute its Windows RT strategy.
Intel has done a good job explaining their plans and roadmap for mobile and the evidence with Medfield is clear, but extrapolating Medfield's performance and the potential of 22nm TG toward achieving commercial competitiveness and success requires more technical chops than 99% of analysts have.
Yes, they will wait until the obvious can no longer be denied then act like they were sages for calling it right.