Intel seems to be valuated based on Margins. What will Foundry business do to margins?
Intel won't do vanilla foundry business. They'll do special foundry such as Atom chips tuned specifically for Apple's IOS. This should keep apple ontop over generic Atom chips and margins
TSMC margins are 45% to 50%.
The analysts are suggesting Intel margins will beome foundry level.
They should be using margin dollars per share.
If they just use gross margins, then there is no way to value the company if revenues and profits double but the gross margins remain constant.