Intel Corporation (Intel or “the company”) designs and manufactures advanced integrated digital technology platforms. The company also develops and sells software and services primarily focused on security and technology integration. The company operates in Asia Pacific, Europe and Americas. It is headquartered in Santa Clara, California.
Intel’s moat is dug from it’s immense investment in R&D and manufacturing capabilities. Intel’s R&D budget averaged close to $11 billion the last few years. In addition, Intel has a streamlined supply chain, shorter time to market, and the ability to scale promising products more rapidly.
Intel posted record revenues for the fourth quarter and full-year 2014 of $14.7 billion and $55.9 billion, respectively. However weaker-than-anticipated demand for personal computers on the corporate side, along with lower inventories across the aggregate PC supply chain and macroeconomic and currency factors in Europe led a general sell-off in Intel. Downward pressures may persist in 2015, however patient investors may be rewarded with above-average total returns out to 2018-2020. The solid dividend is also a plus.
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Continued focus on research and development
Product gaps in the mobility segment
Decline in the PC market
Foray into the wearable device market
Poised to benefit from the growing Internet of Things (IoT)
Growth in the data center markets
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