Intel Corp (INTC)

[Tim May]

I agree that Intel's prospects are good. (I haven't BOUGHT any INTC in maybe 25 years, but I also haven't SOLD much. My broker gave up trying to convince me to diversify. I think diversification is good, but not when government at fed and state levels deigns to take 33%. I'd rather just let it ride and hope that $50 is seen again.)

Anyone who went through the periods when the IBM/Motorola/Apple alliance was strong, or when DEC's Alpha looked superior (it was), or when the Japanese were ten feet tall (they weren't) can see that Intel is now in an incredibly strong position. The ARM in servers or desktops or laptops is a gnat. The ARM in mobiles is obviouisly a threat. But nothing like what was seen with earlier threats.

And we're down to, basically, three chip manufacturers of significance (cutting edge technology). There appear to be no new competitors on the horizon, save perhaps for a Chinese attempt.

Qualcomm rode the wave of foundries competing for their orders for a long time. (I once owned Qualcomm, for what it's worth). But now those manufacturers are cutting out the middleman. All three manufacturers are ARM licenses (yes, Intel....of course....remember StrongARM? Though sold to Marvell, Intel remains a licensee and could crank up production any time it wants to).

Interesting times.