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Broadcom was and is a leader in connectivity-wired and wireless.
TXN bailed out and now maybe BRCM will bow out. It is a tough market. Very difficult to take incumbent out. That is what I think.
If Broadcom is having trouble against Qualcom, can you imagine how Intel would break that barrier. Also, there is possibility Intel may buy this wireless business of Broadcom.
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4:21 PM
Broadcom: What if They Exited Wireless Entirely? Asks Bernstein
By Tiernan Ray
Bernstein Research‘s Stacy Rasgon today reiterates an Outperform rating on shares of chip maker Broadcom (BRCM), and a $36 price target, writing that “Lack of traction in Broadcom’s “baseband” business is at the core of the investment controversy around the stock today,” referring to the company’s attempt to break into the wireless chip business that is the bread and butter of Qualcomm (QCOM).
“Despite several billion dollars of investments, Broadcom’s baseband efforts have failed to deliver the goods so far.”
Rasgon thinks exiting baseband is not necessarily a viable option, given that in some ways it can serve to protect the company’s long-standing business of selling WiFi chips, the “connectivity” franchise, as it’s called.
But he does offer some thoughts on other strategies that would involve winding down investments in both baseband and connectivity:
[Scenario #1] While we believe maintaining a strong connectivity franchise will require a successful baseband business, new opportunities arise were Broadcom to be willing to consider exiting Wireless entirely. In such a move, the loss-making baseband business could be shuttered, and the Connectivity franchise sold (Intel as a potential purchaser comes to mind, among others). Based on comps, and Broadcom’s positioning, we believe the Connectivity business could be worth as much a $10 / share in a sale to the right buyer [Scenario #2] Similar to actions Texas Instruments took when their wireless business came under pressure, Broadcom could consider something similar should it become clear that structural headwinds in connectivity are in fact real, and unavoidable. In such a scenario Broadcom would de-invest, and run the business for cash. In such a scenario, we believe the NPV of these cash flows could be worth $3-7 or more per share.
Rasgon observes that doing these things would likely produce “a smaller company, but one that would likely be granted a higher multiple as many of the secular headwinds would abate, and the company would be left with a substantial amount of excess cash that could be used to return to
shareholders.”
“While contemplating a complete wireless exit may seem drastic, as a “thought experiment” we believe our analysis has substantial merit;
in our opinion if Broadcom’s board is not yet considering all options on the table, they really ought to be.”
Either such restructuring, or eventual success in baseband, could push the stock above $40, he thinks.
Broadcom shares today fell 5 cents to close at $26.40.
If I read it correctly, these are Intel brand products. If Intel has to succeed then that may be the only option.
I was against that approach to start with but everyone else trying to be hardware company, then why not Intel
I agree with you. Once you write calls or puts, you should have strategy. Unless there is significant change for unforeseen reasons, it is good to stick with original positions.
There was a speculation that MSFT will also announce a mini tablet with Intel Baytrail but it did not happen. That would have exposed the Surface 2 weakness.
But like you stated that there will be a lot more this time around to compare and Surface 2 will die faster than Surface 1.
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Microsoft (Nasdaq: MSFT) is lower in early trading Monday heading into its Surface 2 event, which will begin today at 10:30am EDT.
Some key features on the next generation Surface Pro 2, which is the higher-end version of the two, will be an Intel (Nasdaq: INTC) Core Haswell processor, up to 256-gigabytes of storage, similar 10.6-inch display, and updated kickstand.
There might be a Surface Mini at the event, too, which will boast an 8-inch screen and Intel Atom processor.
Microsoft will also debut the Surface RT 2. Providing gobs of confusion for users, the next version will still run on an ARM Holdings (Nasdaq: ARMH)-based chip, but a larger selection of apps will help improve the user experience.
In early trading, Microsoft is down about 0.3 percent.
I noticed Mas has already posted this.
Sep 16, 2013
11:06 PM
Intel: Strategy Takes Shape, Says Stifel; Prepared to ‘Blanket’ Computing Market
By Tiernan Ray
Following last week’s annual developer conference by Intel (INTC) in San Francisco, at which CEO Brian Krzanich outlined a more aggressive push into mobile computing processor development, and the company sounded upbeat about converged tablet-PC devices, Stifel Nicolaus’s Kevin Cassidy today reiterated a Buy recommendation on the stock, and a $28 price target, writing that the company’s “long term strategy” is “taking shape,” and that “Following Intel’s 16th annual Intel Developer Forum, we see the company has made advances in its data center product line up and in driving a convergence of the low end notebook / high end tablet product categories.”
“In summary, we see this year’s IDF as clearly supporting our INTC Buy recommendation as the company uses its manufacturing process advantage to defend its server and PC market share while gaining share in tablets and mobile.”
Intel, he writes, has not only “changed its fundamental transistor design toward power efficiency,” something of primary importance for mobile computing, it has also created a diverse set of products out of a single “platform,” which will enable it to “blanket the computing market” with chips for everything from wearables to supercomputers, he thinks.
The current Atom mobile chips, dubbed “Bay Trail“, already give the company a position in tablets and ultra mobile computing, while the announcement of a really low-power “Quark” chip, forthcoming, is intriguing:
For the client side, Intel announced its 22nm Bay Trail SoC based on a new architecture. These 64-bit devices are targeted ~$100 tablets to ~$500 2-in-1 (tablet mode/clamshell PC mode) products. Android, Windows 8, Chrome, Linux, MacOS all run on Bay Trail. Third party lab test show Bay Trail-based devices having higher performance at similar battery life. We view Bay Trail as putting Intel firmly into the tablet/low end PC market and may slow the erosion of this portion of its revenue. Intel announced its next generation of CPUs, Quark. Being 1/5th the size of Atom and 1/10th power consumption, Quark is targeted at a broad range of ‘Internet of Things’ applications. Quark may become interesting over time.
Intel’s tone, moreover, was less futuristic last week, he thinks, more here and now:
Importantly, in our view, IDF13 presentations and announcements were focused on products available now to only 6 months from now. Typically, Intel announces 2-3 year product roadmaps at IDF. We find this refreshing and demonstrating management’s confidence in its product portfolio.
Intel shares today closed down 5 cents at $23.39.
http://blogs.barrons.com/techtraderdaily/2013/09/16/intel-strategy-takes-shape-says-stifel-prepared-to-blanket-computing-market/
another upgrade.
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Sept 17 (Reuters) - Intel Corp :
* Credit Suisse raises target price to $30 from $28 ; rating outperform
New open interest figures. Intel dominates that both on call and put side. More puts than calls.
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Real-time equity news U.S. stock market report 0920 ET 16Sept2013-Option open interest increases by 3.93 mln contracts --------------------------------------------------------------------------------
A total of 13.1 million contracts changed hands in the U.S.-listed options market on Friday, resulting in net open interest growth of 1.93 million calls and 2 million puts, according to Trade Alert.
Intel Corp , Micron Technology Inc , Facebook Inc and Apple Inc attracted the greatest increase in option open positions, data from Trade Alert showed.
The top five new positions opened include 52,000 Intel October $20 strike puts; 47,000 Intel October $22 strike puts; 22,000 Intel October $24 strike calls; 21,000 General Motors Co December $29 strike puts; and 21,000 GM December $34 strike calls, Trade Alert said.
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To sell products in holiday season, the chips Intel sells will be sold now an din the next a few weeks. It should have impact on Intel revenue but decline in PC will offset that.
Great point.
Finally an upgrade worth noting.
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Sept 13 (Reuters) - Intel Corp :
* Jefferies raises to buy from hold
* Jefferies raises target price to $30 from $27
Who is Ramos? Never ever heard of it. And this name was in the list of OEMs mentioned by Intel executives.
Damn you do or damn you don't.
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Intel’s Mobile Chip Push Is Finally Succeeding — and That’s Not Good for Investors
By Aaron Pressman | The Exchange – 1 hour 4 minutes ago
Intel shopping demo
Intel (INTC) showed this week that it’s finally ready to compete in the fast-growing markets for smartphones and tablets. But for Intel investors, succeeding will be almost as bad as failing.
As phones and tablets replace PCs and laptops, Intel must replace sales of chips that it sells for hundreds of dollars with chips that sell for one-quarter to 1/10 that amount. And, sorry Charlie, they aren’t going to sell 10 times as many.
PC sales are in a tailspin, projected to drop 8% or more this year as tablets jump almost 60% and smartphone sales increase 40%, according to global market tracker IDC.
Intel drops, ARM soars
Intel sells almost all the chips used in PCs. Mobile devices, however, rely on lower-performing but battery-sipping chips licensed from designs by ARM Holdings (ARMH). Amid falling PC sales, Intel's revenue dropped 4% to $25.4 billion in the first half of the year. And in the chip game, where economies of scale rule, that modest drop in sales ended up as a 27% drop in net income to a still substantial $4 billion. No coincidence, then, that Intel's stock price has dropped 2% over the past year while ARM's has shot up 80%.
Until now, Intel had nothing to beat ARM chips, which cost little and draw very little energy in battery-powered mobile devices. Its chips mainly powered late-to-market and unpopular Windows 8 tablets, while ARM dominated on Apple's (AAPL) iPad and iPhone along with almost all Google (GOOG) Android devices.
But at its developer forum in San Francisco this week, new CEO Brian Krzanich and his crew emphasized the incredible performance of a new line of low-power chips dubbed Bay Trail. Intel also showed the fruits of dedicating 1,000 engineers to an Android compatibility push. The end result was a bunch of snazzy new mobile tablet products coming from top vendors such as Samsung (005930.KS), Hewlett Packard (HPQ) and Toshiba.
The problem is that, even if Intel’s new Bay Trail line grabs big market share among the 229 million tablets – versus 322 million PC – the equation won’t add up. It might take chip sales to nearly the entire tablet market just to replace the 30 million of lost PC chip sales this year. And in the 1-billion-a-year smartphone market, Intel remains invisible, lagging on adding the core capabilities phone vendors need.
Intel's new effort to get inside everything from smart watches to industrial air conditioners, a tiny chip line called "Quark," is even more speculative.
That’s not to say Intel hasn’t created some mighty impressive processors. Intel blanketed its developer forum this week with a stream of seemingly endless innovations and new products.
Plenty of flash
A beautiful model strutted along a virtual catwalk, a kid played with a three-dimensional, on-screen butterfly and realistic reflections glinted off whizzing cars in a racing game running on a 7” tablet. All were enabled by the massive increase in processing power in the Bay Trail chips.
The company’s multi-billion dollar mobile chip push finally looks ready to make big gains – its newest chips, fabricated with cutting edge 22 nanometer technology, appear to outperform the competition while drawing less power.
On one benchmark for Android media editing tasks, a tablet running with a Bay Trail chip finished 2.17 times faster than a tablet running Intel's prior Clover Trail generation of chips. A tablet running an NVIDIA (NVDA) Tegra 4 was only 1.64 times as fast and a Qualcomm (QCOM) Snapdragon 800 system scored 1.46.
Another test showed an Intel tablet using 38.5 watts per hour playing back HD video while an iPad and its ARM-based chip performing the same task drew 42.5 watts.
The tests also served to demonstrate just how far Intel's last generation was behind the competition. And the competition obviously will have its own next-gen chips in the market soon, too.
Another risk lurking in the weeds for Intel is the prospect of losing ground in the PC market even as it gains in the mobile world. Apple announced that its homegrown A7 chip, based on ARM designs and powering its new iPhone 5S, will have the capability to run 64-bit software, a step up from current mobile chips that can only run 32-bit software.
But the main attraction of the additional bits is to address more RAM, more than 4 gigabytes. However, neither the new iPhones nor any other portable devices on the market include that much RAM. Most have 2 GB or less. It's personal computers and laptops that use more than 4 GB. And that has generated widespread speculation that, sooner or later, Apple may converge its mobile and Mac lines on its own chips, jettisoning Intel.
Perhaps as a hedge, Intel was also pushing new chips for Google Chromebooks. The mostly low-end laptops run Google's web-based Chrome operating system. They typically cost less than Windows and Mac laptops and can be easier to maintain. The new Intel-based Chromebooks don't use Bay Trail chips, but a more expensive line known as Haswell meant and – priced – for more-powerful computers.
Google's head of Chrome and Android, Sundar Pichai, made a surprise appearance at the developer forum to tout four new Intel-powered Chrome devices. The spread of Chrome devices will be "hugely disruptive in the market – a tipping point," he predicted.
Intel is trying to get positioned for that tipping point. But even if it does, the result may not be enough to sustain the once dominant chip maker.
That is exactly what I said. It is forcing customers hand to come back to Intel to fab these parts.
Intel’s Extensive Makeover
By QUENTIN HARDY
Intel’s chief product announcement to the developers was a new small, low power line of sophisticated chips aimed at wearable computers and sensors connected to the Internet.
Intel’s chief product announcement to the developers was a new small, low power line of sophisticated chips aimed at wearable computers and sensors connected to the Internet.
While Apple talked about a couple of new products on Tuesday, Intel, with much less fanfare, talked about the transformation of a world, and itself.
Wisely, it did not guarantee the success of its own changes, but showed the steps it is taking.
“We got mired down in the here and now, with this fixation on phones and devices,” Renee James, Intel’s president, said in an exclusive interview at the annual Intel Developers Forum. “We needed to step back and say there is a broader transformation going on.”
The changes include not just products, she said, but a transformation of Intel itself, from a client-server era company to a cloud era company. It is a work in progress, she said, that has involved consultation with Google, Facebook and other cloud companies about how they work. Everything, including how employees design products and compensation, is being rethought, she said.
Renee James, Intel’s president.
Renee James, Intel’s president.
“This is bigger than any device,” Ms. James said. “It’s a cultural transformation. We’re trying to be thoughtful about it.”
Intel’s chief product announcement to the developers was a new small, low power line of sophisticated chips aimed at wearable computers and sensors connected to the Internet. In other words, a product for a world where Internet-based computing intelligence is deployed anywhere and everywhere. Intel is hoping it can equip this world with chips at a huge scale, remaking a market usually associated with low-priced, low-margin chips.
Called Quark, the new line of chips is initially aimed at the low-priced end of AMD’s “system on a chip” business. Intel did not provide many specifics about price and functionality, other than to say that it will be one-fifth the size and use one-tenth the power of a low-power mobile processor, code-named Silvermont, which will come out at the end of this year.
Silvermont was planned long before last April, when Brian Krzanich took over as Intel’s chief executive and Ms. James became its president. It is part of the Atom line of chips, intended for tablets and lightweight laptops. As such, it is part of that “fixation” on Intel’s historical reliance on personal computers that Ms. James mentioned.
Quark was a product line that Intel’s researchers had in prototype when she became president, Ms. James said, but because these chips are usually associated with cheap microcontrollers, “we hadn’t decided what to do with it. You could look at the business and say ‘Why do we want to be in this?’” Given the growing reach of the Internet, she said, the question became “Why do we not?’”
Quark chips will become available in significant volumes in the first quarter of 2014, Intel said. That’s when the real performance specifications will be known, and when it can start to move out into the field. What it grows into, and what it means for Intel, is what matters most.
The change was even reflected in the form of the conference: Intel is used to showing developers new chips for personal computers and computer servers, which have fairly straightforward deployments in well-understood machines. Quark is a product for a world in which fitness companies, shoe makers, hackers — basically, anyone — can become an outlet for Intel products
At Tuesday’s forum, Intel deployed more of its engineers than ever so it could talk directly with more individuals. Mr. Krzanich and Ms. James talked in turn about products, and about the hyperconnected world. The two spent 30 minutes taking questions from the audience, a first at this event.
To be sure, the old world still mattered. Mr. Krzanich showed Intel chips in phones, tablets, and laptops that doubled as tablets. The combination products would be available in 60 styles by the end of this year, he said, at prices as low as $400, adding that some Intel-powered tablets would be $100.
Ms. James talked about cities with millions of sensors monitoring every imaginable condition, and cheap genomic analysis of millions of people. Both argued that Intel’s strong design and manufacturing would give it an edge in this world to come.
In some ways, that is the same argument Intel has made for the past couple of years, even as it fixated, and lost money, on trying to preserve its PC-centered business.
Speaking after the event, though, Ms. James said there was no turning back. On Wednesday Intel is expected to make joint announcements with Google that will show a new ability to move away from its old PC model, which was dominated by a relationship with Microsoft, toward addressing a much broader world.
“Intel is redefining what its role is,” she said. “We have a new relationship with Google. There are hobbyists and hackers we’re talking to. We go to maker faires and talk with developers there.”
What remains to be seen is whether Intel can sustain the kind of profit margins it had when it worked in a duopoly with Microsoft.
It is the same model ARM is using. Intel is coping that. Whether it is a good idea, only time will tell. These chips could be built at any foundry.
What Intel believes, in my opinion, is that no one else can make those and these customers will come back to Intel.
Yes. It sure knows how to milk every one else. Whether as a company it survives or not, it sure knows how to influence wall street better than Intel.
At least give a credit where it is due. Its stock went up 15-20% though.
Interesting article.
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Intel Hints At Wearable Gadgets With Hires
By Don Clark
Steve Holmes, a designer who has joined Intel'sINTC +0.31% new devices group Intel Free Press
Intel’s new leaders have said it needs to move more quickly toward where the high-tech world is headed, not just supply chips for already-popular products like smartphones. Two recent hires bolster hints Intel has been dropping about jumping on the wearable-device craze.
One is Steve Holmes, a designer who worked on the popular Nike FuelBand, who joined the company about 12 months ago. He is now a vice president in Intel’s recently formed “new device” group.
More recently, Intel also recruited Hans Moritz, who worked at Oakley on products like its heads-up goggle display and its watch program.
The two men are part of a group headed by Mike Bell, the former Apple and Palm manager who had been helping to lead Intel’s efforts in smartphone chips until he was shifted to the new-devices group in a reorganization spearheaded by Brian Krzanich, who became Intel’s new CEO in May.
Krzanich and Renee James, who was appointed Intel’s president at the same time, are scheduled to give their first keynote speeches in their new roles at Intel’s annual developer forum Tuesday. They are expected to plans to get Intel to step up its game in mobile devices, a market where most customers use chips based on designs from ARM Holdings.
In an interview with the Journal last month, James was asked if Intel has any wearable computers now.
“None that are announced, but you should come to our developer conference in September,” she responded. “We’re going to be talking about where we see computing is going, where Intel is going, and a lot more about how we think computing will be used in the future, beyond the form factors you see today.”
It seems a bit unlikely that Intel would make a smartwatch or some other device and sell it to consumers, as companies like Samsung Electronics is. Intel shies away from competing with companies that could use its chips to make products.
But the company makes plenty of “reference designs” for products that it gives to makers of devices like laptop PCs and smartphones that could help companies that buy its chips get to market faster.
It could go one step further, like rival Qualcomm. The San Diego company also prefers to sell components, but on Wednesday announced plans to market a “limited edition” smartwatch called Toq that CEO Paul Jacobs hopes will serve as a “catalyst” to sales of Qualcomm displays and other technology.
Intel’s recent hires, which had largely gone unnoticed, were reported in the company’s own internal Web publication, Intel Free Press. Before Nike, Holmes did design work at Palm and Apple. He declined to discuss specific product plans, the Intel article stated, but focused more on the value of the data and software rather than gadget hardware itself.
“I come from the hardware side, but even in the best of scenarios many of these objects are going to end up buried in a desk drawer in five years,” he told the publication. “It’s the software and the data that can live on forever if you make them valuable.”
Today's market reaction at least did not support Raymond James.
Raymond James calls it desperate. It does not matter what Intel does, some analysts will hate it.
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6:07 PM
Intel Rises on Data Center Chips: ‘Very Compelling,’ Says RBC; ‘Desperate,’ Says Raymond James
By Tiernan Ray
It was a busy day for enterprise data technology. In addition to EMC (EMC) unveiling a raft of new product, Intel (INTC) held an event at its headquarters to discuss updates to its server chip technologies, hosted by its data center chief, Diane Bryant.
Intel announced a new low-power, task-specific chip for so-called microservers that are increasingly gaining favor in Web computing facilities to perform particular tasks such as file or database management. The “C2000,” chip, Intel said, which can run as low as 6 watts and has 64-bit memory addressing, is the first Intel chip to use the “Silvermont” processor core that Intel is also using for its “Atom” line of chips for mobile phones and tablets, in contrast to traditional power-hungry chips built around Intel’s “Core” microprocessor architecture for mainstream servers and desktops. Intel is going up against similar products from Advanced Micro Devices (AMD). As with AMD, Intel boasts the “system-on-a-chip” nature of the semiconductors, with customers being able to choose from a mix of functional blocks that, when combined, give the chip a distinct set if capabilities for different tasks.
Intel also unveiled chips that can be built into servers to conduct Ethernet networking, replacing dedicated switching hardware; and fiber-optic transceiver products to link server computers together for high-speed data transfer.
The response of bulls and bears was split in fairly stark fashion between those who believe Intel demonstrates substantial progress against AMD and the rest of the ARM Holdings (ARM) licensees, including Nvidia (NVDA), and those who believe Intel is running scared in the face of the ARM threat.
Doug Freedman of RBC Capital Markets reiterated an Outperform rating and a $29 price target on the shares, writing, “INTC’s new Atom low-power C2000, successor to S1200, is a very compelling offering in that it not only offers up to 6x performance/ watt (vs. S1200), but will enable newer markets leveraging prior SoC efforts in mobile (smartphone/tablet).
Thus INTC stands to pick-up ground in new markets with attractive ROI on more customized solutions [...] Performance vs. select S1200 parts are expected to be up to 7x faster, offering up to 6x higher performance per watt. The product is expected to be a best-in-class solution vs. competitive ARM solutions in the marketplace [...] We were encouraged to hear that the gross margin impact is expected to be “a wash”. To us, this implies that the margins are at least comparable to performance-based parts, and potentially better due to 22nm and cost efficiencies realized as a result of leveraging mobile resources.”
From the bear camp, Hans Mosesmann of Raymond James, reiterating an Underperform rating, wrote that “Intel introduced today an impressive number of Atom-based processor, switch, memory, and optical connectivity products/technologies for the datacenter in a move that highlights, in our view, Intel’s sense of urgency to defend its server processor supremacy.”
It is hard to fathom Intel making this big of a splash had ARM not released its 64-bit v8 architecture (for licensing) nearly two years ago with the subsequent strong design interest. Intel was at pains to explain that microservers, as a category, are small but the opportunity for adjacent markets is big. Translation: we are worried about the ARM threat and are willing to cannibalize existing low-end, highly profitable XEONs to make sure this does not happen.”
The Street seems to have been happy, however: Intel shares closed up 57 cents, or 2.6%, at $22.64.
http://blogs.barrons.com/techtraderdaily/2013/09/04/intel-rises-on-data-center-chips-very-compelling-says-rbc-desperate-says-raymond-james/
Off topic-about MSFT and not Intel.
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11:06 AM
Microsoft Slips: Morgan Stanley Cuts to Hold on Handset Integration Risk
By Tiernan Ray
Shares of Microsoft (MSFT) continue to trend down today following yesterday’s announcement the company will buy out the handset operations of its smartphone partner, Nokia (NOK), for $7.2 billion, as Morgan Stanley‘s Keith Weiss cut the stock to Equal Weight from Overweight, arguing the deal is good strategically, but worries about execution may hinder share performance.
Microsoft shares are down 66 cents, or 2%, at $31.22. Shares of Nokia continue to rise, up 12 cents, or 2.3%, at $5.24.
Writes Weiss, taking on the hardware business “likely represents the best strategy for long-term success” for Microsoft, but “investors may not give much credit to Microsoft’s near-term ability to well execute this strategy” given the risks:
By merging Win Phone with its largest OEM partner, Microsoft aims to move its share from less than 5% of smartphones to 15% by FY18, through better marketing and faster innovation. However, a vertically integrated strategy holds risk that few tech cos. have overcome while the 32K NOK employees (18K in mfg), is a sizable addition of sticky costs. Microsoft expects the deal to be $0.08 dilutive to non-GAAP EPS ($0.12 GAAP) in FY14, accretive by FY15, with an est. greater than 50M Win Phones sold (less than 5% of the mkt). We will update our model post the close of the deal, expected in 1H CY14, following approval.
Weiss notes investors want CEO Steve Ballmer‘s planned departure to produce greater return of cash:
With Ballmer retiring and activists in the shareholder base, Microsoft still holds the ability to implement more shareholder friendly changes under the fresh perspective of a new CEO. Stephen Elop will become head of MSFT’s Devices and Services group post close — and seems to be a front runner for CEO. However, with the added complexity of the NOK acq, we see less room for the new CEO to enact major strategic changes, which may limit further sentiment improvement.
Finally analysts are getting it. See the following comments from the article.
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Analysts at Morgan Stanley are expecting that Silvermont design will be much efficient in terms power consumption compared to ARM chips. The architectural features of both Silvermont and ARM have much similarity. Intel chips will also support Android devices from the first day onwards.
More
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From New SoCs to Optical Fiber, Intel Delivers Cloud-Optimized Innovations
Across Network, Storage, Microservers, and Rack Designs
NEWS HIGHLIGHTS
* The Intel Atom C2000 processor family is the first based on Silvermont
micro-architecture, has 13 customized configurations and is aimed at
microservers, entry-level networking and cold storage.
* New 64-bit, system-on-chip family for the datacenter delivers up to six times1
the energy efficiency and up to seven times2 the performance compared to
previous generation.
* The first live demonstration of a Rack Scale Architecture-based system with
high-speed Intel Silicon Photonics components including a new MXC connector and
ClearCurve* optical fiber developed in collaboration with Corning*, enabling
data transfers speeds up to 1.6 terabits4 per second at distances up to 300
meters5 for greater rack density.
SAN FRANCISCO--(Business Wire)--
Intel Corporation today introduced a portfolio of datacenter products and
technologies for cloud service providers looking to drive greater efficiency and
flexibility into their infrastructure to support a growing demand for new
services and future innovation.
Server, network and storage infrastructure is evolving to better suit an
increasingly diverse set of lightweight workloads, creating the emergence of
microserver, cold storage and entry networking segments. By optimizing
technologies for specific workloads, Intel will help cloud providers
significantly increase utilization, drive down costs and provide compelling and
consistent experiences to consumers and businesses.
The portfolio includes the second generation 64-bit Intel Atom C2000 product
family of system-on-chip (SoC) designs for microservers and cold storage
platforms (code named "Avoton") and for entry networking platforms (code named
"Rangeley"). These new SoCs are the company`s first products based on the
Silvermont micro-architecture, the new design in its leading 22nm Tri-Gate SoC
process delivering significant increases in performance and energy efficiency,
and arrives only nine months after the previous generation.
"As the world becomes more and more mobile, the pressure to support billions of
devices and users is changing the very composition of datacenters," said Diane
Bryant, senior vice president and general manager of the Datacenter and
Connected Systems Group at Intel. "From leadership in silicon and SoC design to
rack architecture and software enabling, Intel is providing the key innovations
that original equipment manufacturers, telecommunications equipment makers and
cloud service providers require to build the datacenters of the future."
Intel also introduced the Intel? Ethernet Switch FM5224 silicon which, when
combined with the WindRiver Open Network Software suite, brings Software Defined
Networking (SDN) solutions to servers for improved density and lower power.
Intel also demonstrated the first operational Intel Rack Scale Architecture
(RSA)-based rack with Intel Silicon Photonics Technology in combination with the
disclosure of a new MXC connector and ClearCurve* optical fiber developed by
Corning* with requirements from Intel. This demonstration highlights the speed
with which Intel and the industry are moving from concept to functionality.
Customized, Optimized Intel Atom SoCs for New and Existing Market Segments
Manufactured using Intel`s leading 22nm process technology, the new Intel Atom
C2000 product family features up to eight cores, a range of 6 to 20Watts TDP,
integrated Ethernet and support for up to 64 gigabytes (GB) of memory, eight
times the previous generation. OVH* and 1&1, leading global web-hosting services
companies, have tested Intel Atom C2000 SoCs and plan to deploy them in its
entry-level dedicated hosting services next quarter. The 22 nanometer process
technology delivers superior performance and performance per watt.
Intel is delivering 13 specific models with customized features and accelerators
that are optimized for particular lightweight workloads such as entry dedicated
hosting, distributed memory caching, static web serving and content delivery to
ensure greater efficiency. The designs allow Intel to expand into new markets
like cold storage and entry-level networking.
For example, the new Intel Atom configurations for entry networking address the
specialized needs for securing and routing Internet traffic more efficiently.
The product features a set of hardware accelerators called Intel QuickAssist
Technology that improves cryptographic performance. They are ideally suited for
routers and security appliances.
By consolidating three communications workloads - application, control and
packet processing - on a common platform, providers now have tremendous
flexibility. They will be able to meet the changing network demands while adding
performance, reducing costs and improving time-to-market.
Ericsson, a world-leading provider of communications technology and services
announced that its blade-based switches used in the Ericsson Cloud System, a
solution which enables service providers to add cloud capabilities to their
existing networks, will soon include the Intel Atom C2000 SoC product family.
Microserver-Optimized Switch for Software Defined Networking
Network solutions that manage data traffic across microservers can significantly
impact the performance and density of the system. The unique combination of the
Intel Ethernet Switch FM5224 silicon and the WindRiver Open Network Software
suite will enable the industry`s first 2.5GbE, high-density, low latency, SDN
Ethernet switch solutions specifically developed for microservers. The solution
enhances system level innovation, and complements the integrated Intel Ethernet
controller within the Intel Atom C2000 processor. Together, they can be used to
create SDN solutions for the datacenter.
Switches using the new Intel Ethernet Switch FM5224 silicon can connect up to 64
microservers, providing up to 30 percent3 higher node density. They are based on
Intel Open Network Platform reference design announced earlier this year.
First Demonstration of Silicon Photonics-Powered Rack
Maximum datacenter efficiency requires innovation at the silicon, system and
rack level. Intel`s RSA design helps industry partners to re-architect
datacenters for modularity of components (storage, CPU, memory, network) at the
rack level. It provides the ability to provision or logically compose resources
based on application specific workload requirements. Intel RSA also will allow
for the easier replacement and configuration of components when deploying cloud
computing, storage and networking resources.
Intel today demonstrated the first operational RSA-based rack equipped with the
newly announced Intel Atom C2000 processors, Intel Xeon processors, a
top-of-rack Intel SDN-enabled switch and Intel Silicon Photonics Technology. As
part of the demonstration, Intel also disclosed the new MXC connector and
ClearCurve* fiber technology developed by Corning* with requirements from Intel.
The fiber connections are specifically designed to work with Intel Silicon
Photonics components.
The collaboration underscores the tremendous need for high-speed bandwidth
within datacenters. By sending photons over a thin optical fiber instead of
electrical signals over a copper cable, the new technologies are capable of
transferring massive amounts of data at unprecedented speeds over greater
distances. The transfers can be as fast as 1.6 terabits per second4 at lengths
up to 300 meters5 throughout the datacenter.
To highlight the growing range of Intel RSA implementations, Microsoft and Intel
announced a collaboration to innovate on Microsoft`s next-generation RSA rack
design. The goal is to bring even better utilization, economics and flexibility
to Microsoft`s datacenters.
The Intel Atom C2000 product family is shipping to customers now with more than
50 designs for microservers, cold storage and networking. The products are
expected to be available in the coming months from vendors including Advantech*,
Dell*, Ericsson*, HP*, NEC*, Newisys*, Penguin Computing*, Portwell*, Quanta*,
Supermicro*, WiWynn*, ZNYX Networks*.
More information on the announcements including Diane Bryant`s presentation,
additional documents and pictures are available at
http://newsroom.intel.com/docs/DOC-4267.
About Intel
Intel (NASDAQ: INTC) is a world leader in computing innovation. The company
designs and builds the essential technologies that serve as the foundation for
the world`s computing devices. Additional information about Intel is available
at newsroom.intel.com and blogs.intel.com.
Intel, Atom, Xeon and the Intel logo are trademarks of Intel Corporation in the
United States and other countries.
* Other names and brands may be claimed as the property of others.
Software and workloads used in performance tests may have been optimized for
performance only on Intel microprocessors. Performance tests, such as SYSmark
and MobileMark, are measured using specific computer systems, components,
software, operations and functions. Any change to any of those factors may cause
the results to vary. You should consult other information and performance tests
to assist you in fully evaluating your contemplated purchases, including the
performance of that product when combined with other products. For more
information go to http://www.intel.com/performance.
1 Performance based on Dynamic Web Benchmark Performance: Atom S1260 (8GB, SSD,
1GbE), Score=1522. Atom C2750(32GB, SSD,10GbE), Score=11351.
2 Performance per Watt based on Dynamic Web Benchmark: Atom S1260 (8GB,SSD,
1GbE), Score=1522, est node power=20W, PPW=76.1 Atom C2730(32GB, SSD,10GbE),
Score=8778, est node power=19W, PPW=462. Source: Intel Internal measurements as
of August 2013. Refer to backup for additional details.
3 Based on 2.5G port count compared to the BCM56540
4 Measured per fiber bandwidth on an Agilent Bit Error Rate Tester (BERT) that
included a N4960A-CJ1 controller, N4951A-H32 pattern generator and N4952A-E32
error detector. MXC connector used had 32 fibers for an actual data rate of .8
tera-bits. Mechanical models and CAD simulations show that the MXC can
accommodate up to 64 fibers for a theoretical total bandwidth of 1.6 Tera-bits
per second.
5 ClearCurve fiber operating at 300 meters was tested using 300 meters of new
ClearCurve fiber connected to an Agilent Bit Error Rate Tester (BERT) that
included a N4960A-CJ1 controller, N4951A-H32 pattern generator and N4952A-E32
error detector.
Results have been estimated based on internal Intel analysis and are provided
for informational purposes only. Any difference in system hardware or software
design or configuration may affect actual performance.
Intel's compilers may or may not optimize to the same degree for non-Intel
microprocessors for optimizations that are not unique to Intel microprocessors.
These optimizations include SSE2, SSE3, and SSE3 instruction sets and other
optimizations. Intel does not guarantee the availability, functionality, or
effectiveness of any optimization on microprocessors not manufactured by Intel.
Microprocessor-dependent optimizations in this product are intended for use with
Intel microprocessors. Certain optimizations not specific to Intel
microarchitecture are reserved for Intel microprocessors. Please refer to the
applicable product User and Reference Guides for more information regarding the
specific instruction sets covered by this notice.
INFORMATION IN THIS DOCUMENT IS PROVIDED IN CONNECTION WITH INTEL PRODUCTS. NO
LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL
PROPERTY RIGHTS IS GRANTED BY THIS DOCUMENT. EXCEPT AS PROVIDED IN INTEL'S TERMS
AND CONDITIONS OF SALE FOR SUCH PRODUCTS, INTEL ASSUMES NO LIABILITY WHATSOEVER
AND INTEL DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY, RELATING TO SALE AND/OR USE
OF INTEL PRODUCTS INCLUDING LIABILITY OR WARRANTIES RELATING TO FITNESS FOR A
PARTICULAR PURPOSE, MERCHANTABILITY, OR INFRINGEMENT OF ANY PATENT, COPYRIGHT OR
OTHER INTELLECTUAL PROPERTY RIGHT.
A "Mission Critical Application" is any application in which failure of the
Intel Product could result, directly or indirectly, in personal injury or death.
SHOULD YOU PURCHASE OR USE INTEL'S PRODUCTS FOR ANY SUCH MISSION CRITICAL
APPLICATION, YOU SHALL INDEMNIFY AND HOLD INTEL AND ITS SUBSIDIARIES,
SUBCONTRACTORS AND AFFILIATES, AND THE DIRECTORS, OFFICERS, AND EMPLOYEES OF
EACH, HARMLESS AGAINST ALL CLAIMS COSTS, DAMAGES, AND EXPENSES AND REASONABLE
ATTORNEYS' FEES ARISING OUT OF, DIRECTLY OR INDIRECTLY, ANY CLAIM OF PRODUCT
LIABILITY, PERSONAL INJURY, OR DEATH ARISING IN ANY WAY OUT OF SUCH MISSION
CRITICAL APPLICATION, WHETHER OR NOT INTEL OR ITS SUBCONTRACTOR WAS NEGLIGENT IN
THE DESIGN, MANUFACTURE, OR WARNING OF THE INTEL PRODUCT OR ANY OF ITS PARTS.
Intel may make changes to specifications and product descriptions at any time,
without notice. Designers must not rely on the absence or characteristics of any
features or instructions marked "reserved" or "undefined". Intel reserves these
for future definition and shall have no responsibility whatsoever for conflicts
or incompatibilities arising from future changes to them. The information here
is subject to change without notice. Do not finalize a design with this
information.
The products described in this document may contain design defects or errors
known as errata which may cause the product to deviate from published
specifications. Current characterized errata are available on request.
More news on Avaton
----
SAN FRANCISCO, Sept 4 (Reuters) - Intel Corp has started shipping data-center chips that are based on a major overhaul of its low-power Atom line, in a bid to defend its territory from an incursion by British rival ARM Holdings Plc .
The Santa Clara, California, company said on Wednesday the new Atom chips, which are meant for microservers, networking equipment and storage at major cloud-computing providers, perform six times better than previous versions.
Intel's chips dominate the PC industry as well as servers but the company has struggled to adapt its technology for smartphones and tablets. Most of those devices use low-power chips made by Qualcomm Inc and other companies using technology licensed from ARM Holdings.
Advanced Micro Devices Inc and other companies now plan to use ARM's technology to make low-power microserver chips for data centers, a market Intel is determined to defend. Intel's new chips are made with the company's 22-nanometer manufacturing technology, which is at least a year ahead of rivals. The chips are based on a new microarchitecture called Silvermont.
"Data centers have always been a high-margin business. Microservers are a beachhead, and Intel is trying to kill the attacking army," said Gartner analyst Sergis Mushell.
In May, Intel announced Silvermont, the first overhaul of the Atom chip line since it was introduced for notebooks in 2008 and eventually expanded to include versions for mobile gadgets, data centers and car entertainment systems.
The new Silvermont microarchitecture is analogous to redesigning an automobile engine that will be used in a range of car models with different features.
Silvermont is also the basis for Intel's new 22-nanometer Bay Trail tablet chips, shipping this month, and upcoming Merrifield smartphone chips.
It has oversea money to spend. Might as well gamble and see what happens.
If Intel does any deal like MSFT, its stock will follow MSFT and fall 5-10%. MSFT paid $4B+ for 1% of US smartphone market. Market reaction is very negative. Next it will buy Blackberry.
There is no reason to do that.
Coming from you, this is no surprise. Anything anyone does, it is a great deal and it always has implications for Intel.
You beat me to it. You could see it coming for some time. The timing is strange. It happened after Balmer announced his decision to retire.
Yes, indeed. IDC data was the reason for this fall.
Now I recall that. That is why I was wondering what is he doing now to write this blog.
Thanks.
What is Kevin's position at Intel?
Thanks, Mas.
No problem. Just put summary in your words, if you can. Otherwise, in 10-15 days, the word will be officially out.
Is it possible for you to post important slides?
Thanks.
I can't access it. The file does not open. May be Intel realized its mistake.
Intel is not the only stock. All semi stocks have the same issue.
---------------
Aug 27, 2013
12:48 PM
Semiconductor Short Interest Rose in Early August
By Dimitra DeFotis
More traders and investors shorted semiconductors in the the two-week period ended August 15, according to the latest study by Credit Suisse.
Absolute short interest increased for roughly 51% of names versus 42% in the prior period. Semiconductor short interest as a percent of float increased 3 basis points to 3.79% from 3.76%, while days to cover increased to 4.10 days from 3.32 days. The early August short interest is above the 3-month average of 3.65%, the 6-month average of 3.62% and 12-month average of 3.56%.
To put that in perspective, short interest in the industry bottomed in November 2006 at 2.82% of float. It peaked in July 2008 at 6.01% of float.
Short interest as a percent of float increased for both Intel (INTC) (+0.9%) and Texas Instruments (TXN) (+9.6%). Otherwise, the most significant increases in short interest as a percent of float by company: Sandisk (SNDK) (+216.7%), Tessera Technologies (TSRA) (+56.4%), Marvel (MRVL) (+56.2%) and Altera (ALTR) (+30.5%).
The biggest decreases in short interest: Semtech (SMTC) (-34.7%), Broadcom (BRCM) (-31.3%), NXP Semiconductors (NXPI) (-29.6%) and Atmel (ATML) (-27.1%).
The Philadelphia Semiconductor Index (SOX) underperformed the Standard & Poor’s 500 index for the first half of August by 210 basis points, with the SOX down 3.55% versus the S&P decrease of 1.45%.
http://blogs.barrons.com/techtraderdaily/2013/08/27/semiconductor-short-interest-rose-in-early-august/
Long term I am believer in Intel. I was reacting to today's news.
It is buying it to some extent. The market is up and Intel is down. It was down more earlier.
Without this news, Intel would be up today