Intel Corp (INTC)

[mas]

It's not like they are subsidizing modems, are they?

Intel is in effect subsidizing the modem subsidiary when there are low Infineon sales such as now between the crossover between 3G and 4G. Personnel still have to be paid to develop/produce the products even if very little revenue bacon is being brought home now. So there will be a double whammy improvement to mobile division's numbers when not only the contra-revenue disappears but the 4G revenue picks up. Even 3G sales will pick up again with the Sofia products.

INTC has reached year long highs which was not that difficult in the end as it already had a very favorable technical chart this year and it just needed no bad news to disrupt that. The crucial turning point was the recent dip under 25.85, if it had not rebounded above this point where 15 year old moving averages lurk it would have stayed range-bound under 26. The historical range bound nature of INTC can be explained by its chart and is not symptomatic of any fundamentals.