Key points of Business Analysis of Intel:
- We believe Intel will get benefit from a government program that plans to fund 50 billion for the chips industry.
- In the normal old days, the vertically integrated that become Intel’s business model could serve as a decent competitive advantage. In modern days when the chips get smaller and much smaller, that competitive edge fades too.
- The chip monopoly with AMD should be a good thing, but this is technology. It needs to be stronger, faster, and better every year. AMD and Intel do not compete with each other. People and media bring them into the ring.
- Even if Intel could beat AMD, the ARM architecture poses a threat to x86 which Intel excels in.
- Intel looks cheap in the short term. It has strong connections with laptop vendors, government, and technology. But in the long run, the fierce competition – internal with AMD along with external threats like Qualcomm in the form of ARM – is waiting.
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