General presentation of the Intel Company:
The turnover achieved by this company confirms its success, achieving around 35 billion U.S. Dollars resulting in a net annual profit of nearly 4 billion U.S. Dollars. The major trading activities of this company can be described as follows:
- The large majority of the company’s activities relates to the production of microprocessors and computer equipment of all kinds, which accounts for over 55% of the company’s turnover.
- The second major sector is the manufacture of communication products such as SIM cards or connectivity products that account for 42% of the total turnover.
The major partners of Intel:
Intel is currently the leader in the server processor sector with a market share of over 95% in 2015. However it is important to know about a few of its competitors in order to achieve pertinent analyses.
AMD is the major competitor of Intel in the microprocessor sector. Its processors are in fact compatible with those of Intel as they use the same set of instructions. AMD is also linked to Intel in a more complex manner with, in particular, the 1982 license agreement for the production of certain processors.
It should also be noted that although AMD is currently the only direct competitor of Intel, certain other large companies in the new technology and Internet sectors such as Google, Facebook, Amazon and Alibaba are increasing their endeavours aimed at reducing this reliance on the giant Intel and could, over the long term, become its direct competitors.
It is therefore important to monitor all the innovations related to processors and microprocessors if you wish to invest in Intel shares in order to close your positions at the right moment depending on the movements of the competition in this sector.
The major partners of Intel:
Among the partners of the Intel Company we particularly notice companies in the mobile telephone sector, a sector highly placed for the future and in which the group is trying to strengthen its position against its competitor AMD.
In fact, in 2016, Intel announced the implementation of several strategic collaborations with large constructors in this sector the principal company names of which are listed below:
The principal objectives of these partnerships is of course to rapidly develop the 5G network that is essential for the billions of connected devices that use Intel Group processors and microprocessors.
Introduction and quotation of Intel shares:
Intel Company shares were first launched on the Nasdaq technological market in April 2005 at the price of $23.24 per share before finally falling to the price of $1.18 in 2006 due to the bursting of the dotcom bubble.
But Intel quickly got back on track and the company’s performance then pushed the share price to over $26 in 2007.
The ever increasing demand linked to the computerisation of production and communication systems throughout the world in fact ensures that Intel has a highly charged order book. This is why Intel stocks often show volatile and large fluctuations.
The current market capitalisation of the Intel Company is over 115 billion U.S. Dollars.
Details about Intel’s numerous acquisitions:
It is obvious that Intel is today one of the international leaders in its field of activity. In fact, a big part of the development strategy of this group is based on strategic acquisitions of other companies in diverse fields of activities. We invite you therefore to find out in detail these different acquisitions that have been made over the course of the last ten years:
- In 2009: the acquisition of the American company Wins River Systems in the field of embedded systems.
- In 2010: the acquisition of the American company McAffe in the field of computer security and of the German company Infineon in the field of wireless technology.
- In 2011: the acquisition of the Dutch company Silicon Hive in the field of DSP and the Israeli company Telmap in the field of computer software.
- In 2013: the acquisition of the American company Mashery in the field of computer software, of the Irish company Aepona in the field of SDN, of the Finnish company Stonesoft Corporation in the field of computer security, the Israeli company Omek Interactive in the field of software and the Spanish company Indisys in the field of automatic processing of natural language.
- In 2014: the acquisition of the American company Basis in the field of portable technology, the Canadian company PasswordBox in the field of computer security and the American company Avago Technologies in the field of semiconductors.
- In 2015: the takeover of the American company Vuzix in the field of portable technology, the German company Lantiq in the field of Telecom, the American company Altera in the field of semiconductors, the American company Recon In the field of portable technology and the American company Saffron technology in the field of Cognitive computing.
- In 2016: The acquisition of the German company Ascending technologies in the field of UAVs, of the Israeli company Replay Technologies, of the Italian company Yogitech and the American company Nervana Systems.
In view of all these companies that are now part of the group Intel, we understand better how this company can remain at the forefront of technology and how it remains in a strong position despite the increasingly fierce competition. Of course, all the future acquisitions could have an undeniable influence on the price of this asset on the stock market and must therefore be the object of utmost attention.
The strengths and advantages of Intel as a stock market asset:
Before you start speculating about Intel shares in the Stock market with CFDs, you should of course know the strengths and the weaknesses of this company in order to determine its possibilities of evolution in the medium and long term. Let’s focus first in the advantages of this company and their current strengths when compared to its competitors.
First of all, Intel’s leading position in several of its fields of specialization is the main advantage of this title. The company has in fact the most important shares in the market in various fields and benefits from the craze of investors in a sector in full growth.
The group Intel is in fact currently the world leader in the very specific sector of processors technology which is a very profitable and highly competitive sector of activity due to the opportunities of constant growth and innovation that it offers.
Intel also stands out also for its clever strategy of development and growth, which is based on the process of integrating upstream and downstream acquisitions. This is why, the company has not hesitated to acquire several companies every year, which has increased its presence on the market and has given it all the necessary expertise to develop always more innovating solutions.
Regarding Intel’s near future, several opportunities seem to be leaning towards the companies’ further growth. We know particularly that the demand is constantly increasing in emerging countries which is a highly sought after market and on which Intel has been able to position itself without any difficulty.
The weak points and disadvantages of Intel as a stock market asset:
As we have just seen in detail, Intel shares have numerous strengths which are attractive to investors on the stock market. But it should be said that this title does not only present advantages and it is therefore important to also know its weak points before starting to trade with CFDs. Here are therefore some of the disadvantages about this company that you should know before investing on it.
Fist of all and even if Intel is a strongly innovating company, it entered a bit late into the market of smartphones. This market is currently one of the most profitable ones in the sector of technology. It will therefore be necessary that the company does efforts to make up for this delay in order to catch up its strong competition.
In addition, Intel has the disadvantage of not being very competitive concerning the price of some of its products. Where some of its competitors are keen to offer different ranges of products accessible to everybody, Intel offers very tight prices ranges that could be detrimental in a market that is constantly looking for discounts.
In the near future, Intel could also face some challenges. It is already challenged by the very strong competition of ARM readers, a sector in which it has unfortunately not entered yet and which could make it lose some profits if nothing is plan in order to join the movement.
On the other hand, and even if the group Intel has companies all around the world, its most important units of production are still in the United States. However, this geographical situation has of course a higher cost of production which makes the company less competitive when compared to its adversaries which do not hesitate, in turn, to relocate their factories to the countries where the cost of production is much lower.
Finally, we also notice that, in recent years, Intel has had a significant decrease in profits and margins in a few important sectors of production. This phenomenon has had a tendency to accentuate since emerging countries benefit from a strong industrial growth. It is well known that countries such as China and India are producing more and more electronic devises and have acquire great expertise in this field in recent years.
In order to trade Intel shares in a coherent and wise way, you should therefore take into account the strengths and the weaknesses of this company and be able to understand what are the challenges that it could face in the coming years. Of course, the fundamental data will have to be validated by the data from the technical analysis in order to guarantee you a certain strategic cohesion and to allow you to anticipate the future movements of this title more accurately. Thanks to the information that we have just given to you in this article, you now have all the basic knowledge necessary for a global and complete approach to this title and can therefore carry out an effective and qualitative analyses.