The following is an excerpt from MARK VEVERKA | May 26, 2012 | Barrons.com |
The world’s No. 1 chip producer missed a lot of the opportunity in the smartphone game. But it has a new line of processors that could change that.
Intel is going mobile.
It’s taken awhile. Shares of the world’s largest producer of computer chips have been stuck in the mud in recent years because Intel (ticker: INTC) failed to adapt its high-powered chip architecture to the low-power needs of mobile processors. The dominant chips to date are based on the design of ARM Holdings (ARMH), whose long battery life made it the favorite for manufacturers of wireless devices such as smartphones and other mobile gadgets. But over the next several months, the Santa Clara, Calif.-based company, which has spent billions on the project, will see its Atom line of low-power chips showing up in more smartphones in India, China, France, the U.K., and the U.S.
Investors should be pleased.
“Intel will be a formidable competitor in the smartphone and tablet markets shortly with new design wins and alliances,” says Los Angeles-based portfolio manager Todd Lowenstein, who runs a value-momentum fund for HighMark Capital Management, which oversees more than $16 billion. “This is not in the stock, and investors effectively have a free option on potential success in those areas,” he adds.
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