INTC - Intel Corporation

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
57.79
+0.24 (+0.42%)
At close: 4:00PM EST
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Previous Close57.55
Open57.55
Bid0.00 x 2900
Ask58.10 x 1800
Day's Range57.39 - 58.34
52 Week Range42.86 - 59.59
Volume22,795,852
Avg. Volume18,124,651
Market Cap251B
Beta (5Y Monthly)0.91
PE Ratio (TTM)13.53
EPS (TTM)4.27
Earnings DateJan 22, 2020 - Jan 27, 2020
Forward Dividend & Yield1.26 (2.18%)
Ex-Dividend Date2019-11-06
1y Target Est56.75
  • Amazon Roundup: Government, re:Invent Conference, India, Other
    Zacks

    Amazon Roundup: Government, re:Invent Conference, India, Other

    Amazon had a big week with government issues, a host of new deals and announcements at its annual conference and developments in India.

  • Trading on the News Adds a Risk Premium to Shares of American Micro Devices
    InvestorPlace

    Trading on the News Adds a Risk Premium to Shares of American Micro Devices

    Shares of American Micro Devices (NASDAQ:AMD) were up over 7.7% in late-day trading on Dec. 12. Investors were cheering an "agreement in principle" in the U.S.-China trade war. The hope is two-fold.Source: Joseph GTK / Shutterstock.com First, they hope the Trump administration will suspend the additional tariffs scheduled to go into effect on Dec. 15. Second, they hope this news would lead to the signing of the long-awaited Phase One deal between the two super powers. * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade Investors have every right to celebrate this news. After all, the trade war has held the market for over a year. Every new headline or tweet adds volatility to the market. And for good and bad, you can see this reflected in the stock price of American Micro Devices.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut I would caution investors from trading this news too much. It appears that much of the good news is already baked into the company's stock price. Investors Trading the NewsTrading the news is a common strategy that investors apply as a hedge against periods of market volatility. The bear market spawned by the dot-com collapse and then the Great Recession made even the most ardent buy and hold investors look for ways to protect their portfolios against market downturns. And there's plenty of evidence that proves this has been exactly the case with American Micro Devices.For instance, on Tuesday, June 25, shares of American Micro Devices were trading at $27.58. The next day, the United States and China agreed to a tentative truce in advance of continuing negotiations. The stock jumped up to $29.92.The stock climbed even higher to $34.39 on Monday, July 15. The very next day, President Donald Trump threatened additional tariffs on $325 billion of Chinese goods, and American Micro Devices stock fell to $33.85 on its way to a low of $27.99 on Monday, Aug. 5 in the wake of a so-so earnings report.Here's another example: On Oct. 10, American Micro Devices was trading at a two-month low of $28.38. The next day, President Trump announced the "Phase One" deal and the stock shot up. Why Does This Matter?I know that many of you may say "so what?" Semiconductor stocks are notoriously volatile. I don't disagree. But the thing is, as volatile as semiconductor stocks can be, they're also fairly predictable. The stock price of most semiconductor stocks is based largely on the laws of supply and demand.But shares in American Micro Devices are up over 124% in 2019. And that can't all be because of their new 64-core Ryzen Threadripper 3990x chip. It also can't be explained completely by development issues at rival Intel (NASDAQ:INTC).And that gets to the real concern about the company's valuation. Right now investors are paying approximately 67 times earnings for the stock. That makes observers wonder how much growth the stock price can support. And if that doesn't concern investors, consider that American Micro Device's stock price is almost exactly where it was before the dot-com bubble burst.All of this suggests that the stock may have to fall despite the encouraging news. Can anyone say irrational exuberance? Fade the News About the Trade War"Those who fail to learn the lessons of history are doomed to repeat them." This is a quote attributed to a number of people, but there is a takeaway for American Micro Devices investors.Trading the news can be an effective trading strategy for both day traders and long-term investors. However, when a stock is getting out over its skis, it may be time to pump the breaks. Right now, the trade war has decoupled American Micro Devices from its fundamentals.Is the stock likely to grow modestly in 2020? There's plenty of evidence to suggest that it will. But it may not be the kind of growth that investors expect. It may be time to fade the news and let the fundamentals of the stock take over.As of this writing, Chris Markoch did not have a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade * 7 Tech Stocks to Stuff Your Stocking With * 7 Sinfully Good Casino Stocks That Could Win the Jackpot in 2020 The post Trading on the News Adds a Risk Premium to Shares of American Micro Devices appeared first on InvestorPlace.

  • Micron Technology (MU) to Post Q1 Earnings: What in Store?
    Zacks

    Micron Technology (MU) to Post Q1 Earnings: What in Store?

    Micron's (MU) first-quarter fiscal 2020 earnings are likely to have been hurt by low DRAM revenues amid the U.S.-China trade tussle. However, strong DRAM bit demand is likely to have been a breather.

  • CenturyLink, Intel Partner to Offer Premium Home Connectivity
    Zacks

    CenturyLink, Intel Partner to Offer Premium Home Connectivity

    CenturyLink (CTL), in collaboration with Intel, develops Wi-Fi 6 gateway to meet the increasing demand for premium home connectivity and provide faster connections with embedded security features.

  • Advanced Micro Devices Stock Is a Bargain, But It Still Faces China Risks
    InvestorPlace

    Advanced Micro Devices Stock Is a Bargain, But It Still Faces China Risks

    Advanced Micro Devices (NASDAQ:AMD) stock now faces another critical test. After Advanced Micro Devices stock broke through its stubborn price ceiling, the owners of AMD stock must now contend with the issue of the company's China business.Source: JHVEPhoto / Shutterstock.com Given AMD's potential profit growth, its current valuation may seem low.However, a breakdown of U.S.-China relations could destroy the bullish investment thesis on AMD stock. So though AMD may have somewhat priced in its current geopolitical challenges, investors need to be cautious about AMD stock. Advanced Micro Devices Stock Is Not ExpensiveAMD stock trades at a forward price-earnings (PE) ratio of just under 36. Analysts, on average, expect its earnings to increase 36%.49% per year over the next five years. That implies a price-to-earnings-to-growth (PEG) ratio of around one, indicating that AMD is worth buying.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, in a column published last month, I stated that the near-term prospects of AMD stock would hinge on U.S.-China relations. As long as there is no signed trade agreement between the countries, I remain cautious on AMD's China business. So investors must decide whether the PEG ratio of around one prices the China-related threats into Advanced Micro Devices stock.I would argue that it does. U.S.-China Relations Remain TenuousOptimism from the White House or proclamations that we're "on the verge" of a deal mean nothing. Hope won't do much for the top line of AMD. Moreover, even after the U.S. and China sign an agreement, it may have limited value, as time will tell whether the countries will actually honor the trade pact. * 7 Game-Changing Tech Stocks to Buy Now Furthermore, President Trump signed two bills backing the Hong Kong protesters. He did that over the objection of China's President Xi. Moreover, President Trump still plans to impose a 15% tariff on $160 billion of Chinese goods beginning Sunday. Although we have some indications that these tariffs will be delayed, they add to the uncertainty facing Advanced Micro Devices stock. Worst-Case Scenarios Do Not Appear LikelyStill, even if the reported agreement in principle between China and the U.S, falls through, I do not see a full-blown trade embargo between the U.S. and China as likely.Both economies depend heavily on one another. In the semiconductor industry, AMD is hardly the only company that depends on China for revenue. Almost every major chip maker --Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA), Qualcomm (NASDAQ:QCOM), and many others--all depend heavily on China.Still, Goldman Sachs estimates that about 26% of AMD's revenue comes from China. If that revenue falls sharply or disappears, most of the growth that AMD has achieved under the leadership of CEO Lisa Su would not be eliminated. However, the bullish investment thesis on Advanced Micro Devices stock would be torpedoed.If AMD's profit growth falls to average or below-average levels following difficulties with China, its forward P/E ratio of almost 39 would become high. Less than one year ago, the AMD stock price fell as low as $16.03 per share amid a sharp decline of tech stocks. A similar scenario could unfold again.However, if trade relations improve, both AMD's profit growth and Advanced Micro Devices stock could both move much higher. AMD stock price could face some resistance as it retests the dot-com bubble high of $48.50 per share. However, AMD's low PEG ratio indicates it could rise above the $50 per share mark under the right conditions. Consequently investors who want to buy AMD stock can cautiously proceed. The Bottom Line on Advanced Micro Devices StockRisk-averse investors can buy Advanced Micro Devices stock but should proceed carefully. AMD's PEG ratio makes it looks like a bargain. As massive earnings growth continues under the leadership of Lisa Su, AMD's forward PE of almost 39 seems justified.However, the company also depends heavily on China. The outlook of the trade agreement appears uncertain, and the positive investment thesis on Advanced Micro Devices stock could be destroyed if U.S.-China trade relations deteriorate.As things stand now, figuring out whether AMD stock will retest its 2018 lows or break through its dot-com-bubble high has become more difficult. However, at a PEG ratio of about one, taking a chance at this point could be worthwhile.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Worst Dividend Stocks of the Decade * 7 Game-Changing Tech Stocks to Buy Now * 5 Chinese Stocks to Buy for the Big 2020 Rebound The post Advanced Micro Devices Stock Is a Bargain, But It Still Faces China Risks appeared first on InvestorPlace.

  • Intel Stock Is Topping out for Now, but It Definitely Is a Buy on the Dip
    InvestorPlace

    Intel Stock Is Topping out for Now, but It Definitely Is a Buy on the Dip

    Intel (NASDAQ:INTC) has had a strong few months. On Aug. 23, Intel stock was $44.80. Then on Nov. 26, Intel shares hit a recent high of $59.13. Year-to-date, the stock is up over 20%.Source: Kate Krav-Rude / Shutterstock.com I do not expect Intel share price to go and stay over $60 in the near-term. However, long-term investors may consider adding Intel stock to their portfolio at every dip.On Oct. 24, Intel stock reported Q3 earnings. Revenue of $19.2 billion set a new record and exceeded July 2019 guidance.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, management smashed revenue estimates by about $1.1 billion as the Street expected $18.05 billion in sales. Adjusted earnings per share hit $1.42, up 1%.Intel reports earnings by two main segments: client computing group (CCG) and data center group (DCG).CCG is PC-centric and includes Intel's PC and mobile-device chip business. The central processing unit (CPU) is the "compute" in the computer. Intel's CGC segment makes the CPUs. * The 10 Worst Dividend Stocks of the Decade The chip giant highlights that the DCG segment "is at the heart of [the] transformation from a PC company to [one that] powers the cloud and billions of smart, connected computing devices." Going forward, DCG is expected to be the company's main growth engine.Revenue growth was driven by record data-centric revenue, which grew 6% YoY and hit $6.4 billion. On the other hand, PC-centric revenue of $9.7 billion declined 5% YoY.Management also increased full-year revenue outlook to $71 billion, up $1.5 billion from July guidance. Management Is Transforming IntelIntel designs and manufactures advanced integrated digital technology platforms. It works with companies to produce needed technology like integrated circuits for computing and communication.It controls nearly three-quarters of the CPU market, and Intel processors are the main component -- "Intel Inside" -- in most of the world's personal computers and servers.Yet, the worldwide PC market, which is also Intel's core market, has been at best flat for the past few years. Indeed PC sales are expected to drop about 2% in 2019. And smartphones and cloud have been disrupting this segment.Over the past few years, the decline of PCs has also affected Intel stock price as until recently the shares failed to make new highs but instead traded in a rather tight range.As a result, secular headwinds faced in the PC markets now Intel management is increasingly on a mission to redefine the company and restructure itself to better match the needs of customers and the growth in data.We are all witnessing the fact that computing is increasingly becoming personal and incorporated into many more aspects of daily life. Recent technological advancement can be summarized by growth in data centers, Internet of Things (IoT), and memory. Memory complements data centers and IOT, enabling systems to be faster.Intel currently holds over a 90% share of the data center server market, which has been a consistent growth driver for the company.In Q3, IoT generated $1 billion in revenue, up 9%. Mobileye revenue was $229 million, up 20%. Intel's memory business generated $1.3 billion, up 19%, and programmable chips hit $507 million, up 2%.As the world becomes more connected and focuses on smart devices, there will likely be more demand for data and connectivity to devices, fueling growth in Intel's DCG segment and possibly stock price. Short-Term Headwinds for INTC StockSlow growth: Despite the overall quarterly revenue growth, I'd like to remind our readers that Intel's PC business suffered from lower volume and reported a 6% drop in earnings. In the first half of the year, Intel had reported weakness in its data center business and in Q2 business had seen a 10% drop for sales of chips for data centers.Although Q3 numbers alleviated some of the fears in DCG, long-term investors may want to see the next quarterly report to appreciate the trend in both business segments.Competition: If you are shopping for a windows-based PC or laptop, you will notice that there are only two real choices for the CPU, i.e., manufactured either Intel or Advanced Micro Devices (NASDAQ:AMD).In Q3 2019, AMD had 18% of the desktop CUP market and 14.7% in laptop chips. AMD's numbers have on the rise, thanks to its recently introduced Ryzen CPUs.Many analysts predict that the group is likely to continue to claw away market share from Intel in the coming quarters, too. However, it is also important to remember that AMD is still rather small in comparison to Intel.Trade wars: Tariff wars have been lingering over the broader markets and affecting investor sentiment for almost two years. Unless there is a delay or another development, as of Dec. 15, the U.S. will levy a 15% tariff on around $160 billion of Chinese products, including electronic devices such as smartphones and laptops.If the current tense rhetoric between the two countries continues, then Intel stock is likely to be adversely affected too. Technical Charts for Intel Stock Urge CautionDue to the recent impressive run-up in the INTC stock price, short-term technical indicators have become somewhat overextended. Investors who pay attention to short-term oscillators should note that MSFT also looks "overbought."From a technical perspective, I am not expecting Intel stock to make a significant leg up any time soon. Instead, in the coming days, there might be some profit taking. It's likely that a lot of good news has already been priced into the Intel share price.If you still believe in the long-term bull case for INTC stock, you might consider waiting for a better time to get long, such as around low-$50 or even high-$40 levels.Expect nearer-term trading to be choppy at best, possibly until the next quarterly report that is expected in January 2020. The Bottom Line on Intel StockMany investors would like to see Intel's technological innovations to increase its ecosystem in diverse growth segments, including artificial intelligence (AI), 5G and autonomous driving (AD). These emerging sectors all require data in enormous quantities and at extremely high speeds.As Intel re-orients itself to rely less on PCs and improves its revenue model to capitalize on the growth of the data business globally, INTC stock price is likely to increase in the new decade, too.However, in the next few weeks, there may be some profit-taking in Intel shares. Therefore if you already own Intel shares, you may either consider taking some money off or hedging your positions.Those who do not currently own Intel shares may regard any drop in price to go long INTC stock. And anyone who buys can also enjoy dividend income, which now stands at a yield of 2.2%.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Worst Dividend Stocks of the Decade * 7 Game-Changing Tech Stocks to Buy Now * 5 Chinese Stocks to Buy for the Big 2020 Rebound The post Intel Stock Is Topping out for Now, but It Definitely Is a Buy on the Dip appeared first on InvestorPlace.

  • AMD, IBD Stock Of The Day, Breaks Out Of Three-Weeks-Tight Pattern
    Investor's Business Daily

    AMD, IBD Stock Of The Day, Breaks Out Of Three-Weeks-Tight Pattern

    Advanced Micro Devices is the IBD Stock Of The Day as the chipmaker continues to take market share in processors for PCs and servers from Intel. AMD stock is near a 13-year high.

  • Apple Buys U.K. Startup to Improve iPhone Picture Taking
    Bloomberg

    Apple Buys U.K. Startup to Improve iPhone Picture Taking

    (Bloomberg) -- Apple Inc. acquired a U.K.-based startup with technology that improves photos taken on smartphones.According to filings made public in the U.K. on Thursday, Apple corporate lawyer Peter Denwood was recently named a director of Cambridge, U.K.-based Spectral Edge Ltd., while the startup’s other advisers and board members were terminated.The documents show that Apple now controls Spectral. Similar filings in the past have revealed other startup acquisitions by the Cupertino, California-based tech giant, such as the purchase of digital marketing startup DataTiger earlier this year.A purchase price for Spectral Edge could not be ascertained. The startup said last year that it raised more than $5 million in funding.Apple didn’t respond to requests for comment. The U.S. company has opened offices in Cambridge in recent years to work on artificial intelligence for products like the Siri digital assistant.Spectral Edge uses a type of AI called machine learning to make smartphone pictures crisper, with more accurate colors. Its technology takes an infrared shot and blends it with a standard photo to improve the image.Photography has become a key differentiator in the smartphone market. Apple has rapidly added new camera features to the iPhone, including a triple-lens system in the iPhone 11 Pro earlier this year. It’s also planning to add a 3-D camera to iPhones next year for improved depth sensing and augmented reality.Spectral Edge’s technology could contribute to the AI Apple already uses in its Camera app by continuing to improve the quality of photos in low-light environments. The startup has said its technology can be applied via software or chips. Apple’s latest devices include custom processors that assist with picture taking.Apple’s purchase of the firm is one of several deals it has made this year, including buying Drive.ai’s self-driving car team and acquiring Intel Corp.’s smartphone modem business.To contact the reporter on this story: Mark Gurman in Los Angeles at mgurman1@bloomberg.netTo contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net, Alistair Barr, Andrew MartinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Zacks Industry Outlook Highlights: Intel, NVIDIA and STMicroelectronics
    Zacks

    Zacks Industry Outlook Highlights: Intel, NVIDIA and STMicroelectronics

    Zacks Industry Outlook Highlights: Intel, NVIDIA and STMicroelectronics

  • Chip Analysts Struggle to Get Excited About 2020 After Rally
    Bloomberg

    Chip Analysts Struggle to Get Excited About 2020 After Rally

    (Bloomberg) -- After a year in which semiconductor stocks defied conventional wisdom with a seemingly unstoppable rally in the face of gloomy fundamentals, analysts are loathe to go all in.With signs of a rebound in demand still scant, the key question for the new year is where chipmaker shares can go when they’re trading at the highest price to future earnings multiples in nearly a decade. Most analysts expect business to improve in 2020, aided by things like 5G technology and cloud infrastructure spending. But valuations are cause for concern, especially when accounting for lingering tariff uncertainty.“It is challenging to argue that a good amount of the future return potential hasn’t simply been pulled forward on hope,” said Bernstein analyst Stacy Rasgon.At the end of 2018, most of Wall Street saw little to get excited about in the semiconductor industry. Chipmakers had begun axing forecasts as customer orders slowed and inventories swelled as the U.S.-China trade war heated up. Despite all of that, the Philadelphia semiconductor index embarked on a relentless advance, logging just two down months the entire year.The gauge that tracks 30 semiconductor-related stocks has risen 56% so far in 2019, which would be the biggest annual gain in a decade. That eye-popping number was aided by a brutal market sell-off at the end of 2018 that hit technology stocks particularly hard. Chip shares notched new highs Thursday after President Trump said the U.S. and China are “very close” to a “big” trade deal.To keep the rally going, semiconductor companies will need to start posting better-than-expected financial results, according to Morgan Stanley analyst Joseph Moore, who was one of the first analysts on Wall Street to get cautious on the group in the second half of 2018. Moore now advocates holding a select group of stocks including Intel Corp. and Nvidia Corp., which he expects to benefit from higher cloud spending in 2020.“The period where stocks are going to go up on bad numbers is largely behind us,” he said in an interview. “If the numbers come up, then we can have some good performance. I don’t think there’s room for these multiples to come up too much more.”In that regard, the third quarter was a good start. With results in from all members of the chip benchmark except for Broadcom Inc., more than three-quarters of companies beat profit and revenue estimates, according to data compiled by Bloomberg.Still other indicators are worrisome. Inventory levels for many chipmakers remain elevated, according to Moore, and tariffs haven’t been resolved. U.S. goods on some electronics imported from China are set to increase on Dec. 15 if there’s no trade deal.Despite the trade uncertainty, 2020 is “looking decent” from a fundamental standpoint, according to Bloomberg Intelligence analyst Anand Srinivasan. He expects cloud spending to improve, 5G spending to kick in, and stability in mobile devices and personal computers.“The growth themes that we have been positing are going to be manifested in 2020, particularly in the second half,” he said. “We think it still could be a bumpy ride from a stock perspective but we feel optimistic about 2020.”See AlsoSoftware Analysts See More Volatility in an Uncertain 2020Airbus Secures Lead Over Boeing as 737 Max Weighs Into 2020After ‘Blood-Spilled’ Year, Pot Firms Brace for Repeat in 2020Small-Caps Set to Retake 2020 Market Lead After Three-Year LagS&P 500 Melt-Up Is So Hot It’s Making Cheerleaders Into Skeptics(Updates shares and Trump comments in fifth paragraph, adds P/E chart.)\--With assistance from Lu Wang.To contact the reporter on this story: Jeran Wittenstein in San Francisco at jwittenstei1@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Jennifer Bissell-LinskFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • AMD Augments Graphics Capabilities Through New Radeon GPU
    Zacks

    AMD Augments Graphics Capabilities Through New Radeon GPU

    AMD launches new Radeon Pro W5700X GPU for Mac Pro users. The configuration enables tackling heavy workloads.

  • Cisco Enters Chip Market: Should AVGO, INTC, ANET Take Note?
    Zacks

    Cisco Enters Chip Market: Should AVGO, INTC, ANET Take Note?

    Cisco (CSCO) ups its game in networking chip market with Silicon One Q100, putting Broadcom, Intel, Arista Networks, and Juniper Networks at risk.

  • 5G Set to Transform US Healthcare: 3 Stocks to Watch
    Zacks

    5G Set to Transform US Healthcare: 3 Stocks to Watch

    Non-MedTech companies are ramping up investments in healthcare through 5G.

  • GuruFocus.com

    US Indexes Close Higher Wednesday After 2 Days of Losses

    S&P; 500 up 0.29% Continue reading...

  • Intel's latest diversity and inclusion report shows slow change
    American City Business Journals

    Intel's latest diversity and inclusion report shows slow change

    It’s been four years since chip maker Intel Corp. announced its big diversity initiative, but the company still has a majority population that is male and white or Asian. Intel has released diversity data on its U.S. workforce since 2015. In this year’s report it included data for its global population of 107,000 workers as well as detailed pay data on its U.S. workforce, which is about 51,000 employees.

  • Reuters

    UPDATE 3-Intel hires former GlobalFoundries, IBM chip executive

    Intel Corp has hired Gary Patton, who was chief technology officer at semiconductor maker GlobalFoundries, according to an internal Intel memo seen by Reuters on Wednesday. Patton previously spent more than a decade in the chip unit at International Business Machines Corp. Intel, which was known in Silicon Valley for promoting heavily from within, has lured several notable executives from competitors.

  • Semiconductor-General Stock Outlook: 2020 Prospects Lifting Shares
    Zacks

    Semiconductor-General Stock Outlook: 2020 Prospects Lifting Shares

    Semiconductor-General Stock Outlook: 2020 Prospects Lifting Shares

  • Cisco Enters Chip Market, Supplying Microsoft, Facebook
    Bloomberg

    Cisco Enters Chip Market, Supplying Microsoft, Facebook

    (Bloomberg) -- Cisco Systems Inc. has started supplying switch chips to major data-center operators, including Microsoft Corp. and Facebook Inc., opening up a new avenue to win orders from some of its largest networking-equipment customers.Cisco Silicon 1 is a switch semiconductor that’s already being used by Microsoft and Facebook in crucial networking equipment, the companies said Wednesday at an event in San Francisco. San Jose, California-based Cisco is now offering the chips, which it says are the fastest in the industry, to all of its customers, regardless of whether they buy its networking machinery. Previously Cisco’s chips were only available as components of its machines.The shift toward standalone chip sales is another departure from the business model that made Cisco one of the biggest companies in the technology industry. Cisco’s expensive proprietary combinations of hardware and software make up the backbone of much of the internet and corporate networks, and these products generate the bulk of the company’s revenue. The new initiative has the potential to attract business from customers who want to build their own machines instead of buying whole packages. It also puts Cisco in direct competition with its suppliers, Intel Corp. and Broadcom Inc., which also make switch chips that the networking equipment maker uses in some of its products.“From today -- and this is something that some of you never thought we’d do -- some of our customers will buy our silicon and build their own products if that’s what they choose to do,” Chief Executive Officer Chuck Robbins said at the event. “We really want our customers to consume this technology in any way they want.”As the internet infrastructure business moves away from suppliers who provide all the needs through locked-down combinations of hardware and software, Robbins has been pushing Cisco to adapt by becoming a bigger supplier of networking services and software. On his watch, software has risen to provide about 11% of revenue. Hardware still generates more than half of sales.Cisco shares rose less than 1% to $44.24 at 2:02 p.m. in New York. The stock gained 1.8% this year through Tuesday’s close.The move into selling components is an attempt to win orders from the hyperscalers, such as Microsoft, Google and Amazon.com Inc.’s AWS, a group that has increasingly turned away from Cisco’s offerings and equipped their data centers with computers and networking gear designed in house. Those big cloud-computing vendors contribute as little as 2% of Cisco’s total sales, according to Raymond James analyst Simon Leopold.Switch chips perform the crucial function of deciding where packets of data should go in a network of computers. They are designed to handle that task at great speed, and only a few companies have been successful in the market. Broadcom is the biggest provider of this type of chip as an individual component and has as much as 80% share, Leopold said. Intel took a bigger interest in the market in June when it bought startup Barefoot Networks.Cisco’s new offering will combine the attributes of both switch and routing chips, the company said. It’ll be able to move data very quickly and still be programmable, carrying the ability to have its function changed. Routing, directing traffic among networks, is typically conducted by groups of chips that bring other attributes but are unable to direct data fast enough for modern internet traffic loads. One chip providing all of the functions will simplify the operation of networks by eliminating the need for different layers of software, Cisco executives said.Offering up what was previously guarded as a proprietary advantage shows a flexibility at Cisco that has been increasing as Robbins works to transform the company. Analysts predict the build-it-yourself approach to networking, pioneered by the large cloud-service operators, over time will be copied by companies looking to reduce the cost of their data-center spending. That corporate market is one of Cisco’s biggest sources of revenue.Cisco’s equipment, including its chips, is designed by the company and manufactured by a third party, which it hasn’t identified.The company also announced a new router machine at the event, designed to better serve as the backbone for new fifth generation, or 5G, cellular networks. The Cisco 8000 will be based on the new chip. The company also unveiled plans for products that will support faster data transmission speeds over fiber-optic cables. Like the rest of the networking industry, Cisco is positioning itself to be a main provider of equipment for the predicted surge in internet traffic and data created by the proliferation of mobile systems.(Updates with comment from Cisco CEO in the fourth paragraph.)To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • 3 Semiconductor Stocks to Buy Right Now for 2020 on Chip Comeback
    Zacks

    3 Semiconductor Stocks to Buy Right Now for 2020 on Chip Comeback

    We found three semiconductor stocks with the help of our Zacks Stock Screener that investors might want to consider buying for 2020...

  • ETF Trends

    Electric Vehicle ETF Could Floor it Higher in 2020

    Buoyed by robust expectations for the electric vehicle market, The Global X Autonomous & Electric Vehicles ETF (DRIV) is up more than 21% year-to-date. DRIV tracks the Solactive Autonomous & Electric Vehicles Index. Component companies include firms “involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt,” according to Global X.

  • Nio cuts jobs in San Jose as result of Mobileye partnership
    American City Business Journals

    Nio cuts jobs in San Jose as result of Mobileye partnership

    When including the new round of cuts, Nio has laid off 273 Bay Area employees this year, including the closure of its San Francisco office last spring.

  • 'Plundervolt' attack breaches chip security with a shock to the system
    TechCrunch

    'Plundervolt' attack breaches chip security with a shock to the system

    Today's devices have been secured against innumerable software attacks, but a new exploit called Plundervolt uses distinctly physical means to compromise a chip's security. The Plundervolt attack does just this, using the hidden registers to very slightly change the voltage going to the chip at the exact moment that the secure enclave is executing an important task.

  • Benzinga

    AMD Reportedly Targeting 10% Market Share In Server Processors

    In addition to making strong inroads in the desktop CPU market, AMD is also making its presence felt in the sever processor market, according to comments made by Ruth Cotter, AMD's senior vice president of worldwide marketing, at the UBS Global Tech conference, Wccftech reported. AMD first introduced the EPYC server processors in June 2017, based on the Zen microarchitecture. AMD has a 7% share of the server processor market, a far cry from the 26% share it held in mid-2006 following the launch of its Opteron processors, according to Wccftech.

  • Business Wire

    Intel’s Continued Commitment to Transparency and Equity at All Levels

    Intel Corporation is disclosing its latest workforce representation data, as well as 2017 and 2018 pay data.

  • Is Intel Stock A Buy Right Now? Here's What Its Earnings, Stock Chart Show
    Investor's Business Daily

    Is Intel Stock A Buy Right Now? Here's What Its Earnings, Stock Chart Show

    Intel stock has been battered by product missteps, rising competition and a downswing in chip demand. Here is what the fundamentals and technicals say about the chipmaker's shares.