Forum Views ()
Forum Replies ()
Read more with google mobile :
Mobile doubts weigh on chipmakers Intel, AMD
Yahoo!
My Yahoo!
Mail
More Yahoo! Services
Account Options
New User? Sign Up
Sign In
Help
Yahoo! Search
web search
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Weekend Edition
Mobile doubts weigh on chipmakers Intel, AMD
Reuters - Saturday, January 15
Send
IM Story
Print
By Noel Randewich and Tarmo Virki
SAN FRANCISCO/HELSKINKI - Fears about Intel Corp's absence in tablets and smartphones are overshadowing the chipmaker's strong earnings and reinforcing the impression that the company no longer sets the direction of the tech industry.
The world's largest semiconductor maker has new chips for mobile devices on the way this year and is boosting spending on research and development, but it remains far behind rival ARM Holdings, whose chip architecture is found in most smartphones and tablets.
Despite better-than-expected fourth-quarter earnings and guidance posted on Thursday, and a broadly higher market, its shares slipped as investors focused on the company's failure to stake out territory in the mobile market.
Even as Intel's stock fell, shares of other semiconductor companies rose, with ARM rising 6.5 percent to a 10-year high.
The stock market, and sentiment on the wider technology industry, for years moved in tandem with Intel following its earnings report. But in recent quarters they have diverged.
"It's historically been the bellwether, that if you're positive on the sector you're positive on Intel, but I think that relationship is breaking down," said Craig Berger, an analyst at FBR Capital Markets.
Intel's strategy in the mobile market has been to adapt chips originally designed for personal computers but versions released so far consume more energy than ARM-based chips, making them less suitable for mobile gadgets that are left on for hours at a time.
People are increasingly turning to mobile devices to surf the Web and some investors believe Intel's traditional focus on PCs could begin to lose relevance.
AMD QUANDARY
Intel's struggles are highlighting smaller rival Advanced Micro Devices Inc's lack of strategy in the exploding ultramobile market too.
This week AMD Chief Executive Dirk Meyer left the company following concerns he hadn't done enough to pursue the mobile market. And Silicon Valley rival Nvidia Corp's stock surged for days on high expectations for its new Tegra 2 chips for tablets and smartphones.
"AMD is in a very unenviable position of having arguably one of the worst balance sheets in semiconductors," said Rick Schafer, an analyst at Oppenheimer. "And its sandwiched between Intel and Nvidia, two guys with huge balance sheets, huge cash flows and resource to spend on research and development."
Intel and AMD shares both fell about 1 percent on Friday. Intel's shares are trading at about the same level as a year ago, compared to a 19 percent rise in the Standard & Poor's 500 index since then.
AMD is scheduled to deliver fourth-quarter earnings on Thursday. This week, it said its fourth-quarter revenue increased 2 percent sequentially to $1.65 billion, with a gross profit margin of roughly 45 percent.
WANING BELLWETHER
Investors cited Intel's meager position in growing tech segments like tablets and mobile devices as a reason its status as a go-to proxy for tech shares is waning.
Ralph Shive, the South Bend, Indiana-based manager of the $1.7 billion Wasatch-1st Source Income Equity Fund, said he has added to his Intel holdings in the last year, "but we understand that the momentum group won't be pounding the table to get in here."
Financial analysts' ratings on Intel's stock on average lean toward "buy," according to Thomson Reuters data, and many say it has been punished too much for the company's lag in mobile.
"People are worried that tablets will have an impact and ARM will move up the food chain, and that Intel won't be able to move down the food chain. But I think that's overdone," said Mahesh Sanganeria, an analyst at RBC Capital.
Intel is nearly doubling its capital spending in 2011 to around $9 billion and ramping up production of its next-generation 22-nanometer microprocessors, which will give it a major technological lead against competitors.
Also on Friday, Intel's general manager for Asia-Pacific said he was positive about growth in PC sales in emerging Asia, particularly China and India.
"I look around and travel around and I see the emerging markets continuing to be quite good," Navin Shenoy told Reuters.
Intel was the first major technology company to report fourth-quarter results, and despite worries about the chipmaker's mobile strategy, its upbeat numbers set a positive tone for much of the rest of the sector. The Philadelphia Semiconductor Index was up 2.6 percent.
Recommend
Send
IM Story
Print
Related Articles
Google gains ground in US search market AFP - Saturday, January 15
IBM may boost tech confidence, services in focus Reuters - Saturday, January 15
Kennedy library puts archives online AFP - Saturday, January 15
US-TECH Summary Reuters - Saturday, January 15
Over half of US online adults use Wikipedia: survey AFP - Saturday, January 15
News Search
Top Stories
Fiat Mirafiori staff 'approve' deal with conditions
BP, Rosneft reach 'historic' Artic deal
Delta mulls massive aircraft purchase
JPMorgan Chase profits soar in 2010
US consumer prices up 0.5% in December
More Top Stories »
ADVERTISEMENT
Most Popular
Most Viewed
N.Zealand flood rescuers get Aussie snake catcher
Breastfeeding study raises doubts over guidelines
JPMorgan Chase profits soar in 2010
Delta mulls massive aircraft purchase
Phelps returns to the swimming pool in Texas
More Most Viewed »
More Most Recommended »
Elsewhere on Yahoo!
Financial news on Yahoo! Finance
Stars and latest movies
Best travel destinations
More on Yahoo! News
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Weekend Edition
Subscribe to our news feeds
Top StoriesMy Yahoo!RSS
» More news feeds | What are news feeds?
Also on Yahoo!
Answers
Groups
Mail
Messenger
Mobile
Travel
Finance
Movies
Sports
Games
» All Yahoo! Services
Site Highlights
Singapore
Full Coverage
Most Popular
Entertainment
Photos
Yahoo! News Network
Copyright © 2011 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Terms of Service |
Privacy Policy |
Community |
Intellectual Property Rights Policy |
Help
Other News on Saturday, 15 January 2011 Judicial enquiry into Berlusconi, teenage girl: press
Taiwan develops face-recognising vending machine
Delta mulls massive aircraft purchase
Mobile app takes on India's cheating tuk-tuk drivers
JPMorgan Chase profits soar in 2010
Ivory Coast strife draws in West Africa central bank
|
Dozens of pilgrims killed in India stampede: report
|
Lebanon's Hariri says no alternative to dialogue
|
Quake in Chile set off tremors in California: U.S. study
|
China and Russia won't join nuclear tour: Iran
|
Haiti slum clash stokes unrest fears, one killed
|
Spelling challenged Florida man claims emotional distress and sues WikiLeaks, Julian Assange alleging treason
GM adds $2 billion in shares to pension plan
Hasbro Holiday Sales Decline
Intel's market sway wanes as it bucks S&P gains
|
UC Berkeley begins laying off 150 workers
US bank closing UN diplomatic accounts
Sprint eyes machine-to-machine benefits in 2 years
|
Nude housekeeper acquitted in murder of client
GOP poised to vote for new chairman
OWN acquires docufilm about Chaz Bono's reassignment surgery
Analysis: Ambition, fear means business tongue-tied on China
|
American cheap chic discount chain enters Canada
Wife of Massachusetts Rep. Tierney Sentenced To Prison
Intel settles with WiLAN over patent litigation
|
Doctors to amputate actress Zsa Zsa Gabor's leg
|
CBS concerned about Charlie Sheen but show goes on
|
Adam Sandler and Andy Samberg teaming on Dad film
|
Gwen Stefani becomes new face of L'Oreal Paris
|
James Gandolfini is rock solid in Down the Shore
|
Big ratings for Wipeout, Big Bang Theory
|
Publicist sues Golden Globes organizers
|
Green Hornet off to good start at midnight showings
|
Paris Hilton promises tears, fights in new series
|
Launch of Murdoch's The Daily delayed: report
US consumer prices up 0.5% in December
Wikipedia founder sees biggest impact yet to come
Australia and S.Korea draw in Asian Cup match
Analysis: Investors look to cloud for tech stock picks
U.S. agency sees problems in Falcone's wireless plan
Jude Law returns to London stage in "Anna Christie"
Lebanon's Hariri vows to cooperate on ending crisis
Taliban 'to allow girls education': minister
Fiat Mirafiori staff 'approve' deal with conditions
Tunisia PM pledges calm, coalition talks as president flees
|
Hundreds protest over high prices in south Jordan
BP, Rosneft reach 'historic' Artic deal
US-TECH Summary
Sprint eyes machine-to-machine benefits in 2 years
Sadr's followers demand Biden stay away from Iraq
Judicial enquiry into Berlusconi, teenage girl: press
Roadside bomb kills 7 in southern Afghanistan
Intel settles with WiLAN over patent litigation
100 pilgrims killed in India stampede
|
Analysis: Ambition, fear means business tongue-tied on China
107 trillion emails sent last year: Pingdom
Globes face lawsuit on eve of Hollywood show
Rival urges force to oust I. Coast's Gbagbo
More than 100 dead in Indian pilgrimage stampede
Weeks of rains leave 47 dead in Philippines
Goldman's Blankfein pitches for Groupon's IPO: report
|
Taylor defiant as N. Zealand melt down
Broadcast critics click on Social Network
|
Steven Tyler talks American Idol
|
Pair arrested in false claim against actor Gary Busey
|
Showtime planning reality TV series on gigolos
|
San Francisco Giants to star in reality TV show
|
Amnesty urges torture charges on Indonesia soldiers
China urges Taiwan to release fishermen: report
YouTube mobile video viewing tops 200 mln a day
Volunteer army cleans up, Australian floods spread
Japan foreign minister arrives in S. Korea
Doctors amputate actress Zsa Zsa Gabor's leg
Kama Sutra virus dupes with sexy promise
Clinton presses China on rights before visit
Hollywood production in Canada sees modest climb back
Aussie NBA star Bogut to help flood victims
NY judge to sentence geriatric gangster, 93
List of possible Hutchison successors takes shape
Youngest Ariz. shooting victim laid to rest
Globes face lawsuit on eve of Hollywood show
The abrupt dawning of the age of Ophiucus
US-ENTERTAINMENT Summary
Steven Tyler talks "American Idol"
Pair arrested in false claim against actor Gary Busey
China to station troops in N. Korea: report
Doctors amputate actress Zsa Zsa Gabor's leg
Showtime planning reality TV series on gigolos
San Francisco Giants to star in reality TV show
North Korea to set up economic development bureau
Gwen Stefani becomes new face of L'Oreal Paris
US to be candid on economy during Hu trip
Big ratings for "Wipeout," "Big Bang Theory"
Indian billionaire barred from investing in stock market
US, EU firms complain China not doing enough on IPR
Hyundai Motor signs initial deal to buy builder
Myanmar planning large-scale privatisation: local media
Pakistani stocks end on 31 mth high; rupee firms
Strong yen forces Daihatsu out of Europe
China raises banks' reserve requirement ratio
Google gains ground in US search market
IBM may boost tech confidence, services in focus
Kennedy library puts archives online
Over half of US online adults use Wikipedia: survey
Mobile doubts weigh on chipmakers Intel, AMD
Iran opens atom sites to foreign envoys
US Marine kills Afghan policeman after dispute
Zsa Zsa Gabor has leg amputated to save life
U.S. marine kills Afghan policeman after dispute
|
Many still missing in Brazil floods
|
Iraqi soldiers kill two U.S. soldiers in Mosul
|
EU freezes Ivory Coast port and bank assets
|
Gunmen kill 17 in new Pakistan violence in Karachi
|
IAEA envoys tour Iran nuclear site: report
|
Politics makes convicting Pakistani assassin difficult
|
Deadly day for US troops in Iraq, three killed
S. Korea wants UN to act on N. Korea uranium
Anglican bishops ordained as Catholic priests in London
|
Sudanese youths call for peaceful government overthrow
|
Federal judge remembered as a fair jurist
S. Korean freighter hijacked off Somalia
Banned lean-enhancing drugs in Taiwan detected in US beef
Ronald Reagan's son: Alzheimer's seen during presidency
Unctad chief urges safety net, Downturn could spread, Supachai warns
Obama administration ends high-tech border fence
Gunmen kill 17 in new Pakistan violence in Karachi
Official: Ariz. shooter posed in G-string with gun
Philippines to expel 70 S. Korean children
Panel says women should be allowed in combat units
At least 100 pilgrims killed in south India stampede
GOP ousts Steele, picks Priebus to head party
Thai red shirts and traders strike a deal on protest schedule
Thai environment report paints bleak picture
Doctors amputate actress Zsa Zsa Gabor's leg
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights