1. Management strategy has evolved with the changing times. The primary focus area at the moment is the data center and cloud, where Intel is doing everything possible to maintain its market share and profitability. Supporting this is continued investment in the Internet of Things (IoT) and non volatile memory/storage (memory is closely associated with processing speeds and it also helps increase penetration at customers).
2. Intel’s non-volatile memory business is poised to take off. While NVM has fairly broad application across markets, the company is primarily targeting enterprise/data center customers to drive penetration of this high-margin segment. The company tied up with Micron to develop new memory technologies back in 2006.
3. Intel is the unquestioned leader in the microprocessor market, remaining number one in terms of market share and product performance. The company has focused on selling not just separate components but platforms optimized for specific markets, whether mobile, enterprise, or the digital home. Intel’s innovative efforts are speeding up the entire computer, and not just the central processing unit (CPU).
4. Intel's acquisition of Israel-based Mobileye, an autonomous vehicle technology provider is significantly positive. The acquisition will help the company rapidly penetrate the autonomous car technology market, currently dominated by the likes of NVIDIA and Qualcomm. With the buyout, Intel will now have access to Mobileye’s technologies related to cameras, in-car networking, sensor-chips, roadway mapping, cloud software, machine learning and data management.
5. Finstead is particularly optimistic about the data center business. The drive to lower-cost computing devices is increasing the pressure on servers that are taking the load off these devices. As more information in various structures and formats are increasingly stored in the cloud, there is demand for a new breed of chips that are more efficient in terms of cost and energy but may not pack in quite as much compute power as in the past.
Data can tell why:
Intel forward dividend yield is 2.46%, higher than the industry (0.80%) and sector (0.39%) forward dividend yields.
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Looking forward to hearing everyone's voice.