Talking about the Microsoft Surface Pro 2 the other day focuses me towards their supplier of microprocessor Intel Corp (INTC). Intel is known to be the largest chipmaker in the world with Advanced Micro Devices (AMD) following closely behind. The problem with Intel in the last couple of years is the shifting of technology towards mobile devices which makes them a weaker company for investors to look at due to their inability to come up with a chip for mobile processors such companies like ARM Holdings (ARMH) or Qualcomm (QCOM). Both Intel and Microsoft faced similar problems as being laggers in the mobility market but both indeed both still remains strong for the market share of desktop/laptop computers. But with the introduction of the 22nm microprocessors by Intel, the results are very convincing pairing it with tablet and smartphones.
The 22nm is one the most efficient microprocessors in terms of processing power, energy efficiency and known to produce better graphics. With all of that in mind, a tablet would not have to sacrifice processing power for a prolonged battery life and having a better performance in graphic acceleration just moved it one step further into competing with regular laptop computers running custom graphic cards.
Seemingly all this are just good news for Intel and bad news for its competitors when the largest chipmaker in the world is once again competitive at what it does best in the industry. Well, a little bit of economies of scale comes in when they can provide good R&D and quality products all for a cheaper price. I foresee a higher growth for Intel in the next couple of years especially with the boom in mobile devices. Many more electronic device makers such as Samsung, Sony or even Chinese mobile giants could incorporating Intel's latest chipset into their devices. To start with that we saw Lenovo using the Intel chip with their devices already earlier this year.
| Intel Inside |
With the roll out of the the market for their products, this has placed Intel once again on the undervalued list of stocks. As soon as the "Intel Inside" logo starts to crawl into the covers of new devices, Intel shares would definitely crawl towards new highs in the future.
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