Intel Corporation (INTC) Is Fueling for the Ride of Its Life

ARM’s worst nightmare became reality. Intel waged war. Samsung announced that it chose Intel’s chip for its new tablets. Intel’s Clover Trail + Atom system-on-chip is less expensive than ARM’s equivalent.  Moreover, Intel Corporation (NASDAQ:INTC)’s next-generation core processors based on the Haswell architecture will result in significant battery power savings for tablets, further pressuring ARM to produce better technology.

Why Microsoft Corporation (NASDAQ:MSFT) cares

From cloud computing to operating systems to gaming, Microsoft Corporation (NASDAQ:MSFT) is literally everywhere in the technology industry. One of the goals for its Windows RT platform, a mobile variant of its Windows 8 operating system, is to enable ARM to gain more market share in the mobile tablet market. Why? Because ARM is the exclusive technology architecture platform for Microsoft’s Windows Phones. Fortunately for Intel, the Windows RT platform seems to be on its last leg.

Ultimately, Microsoft’s mission is to “help people and businesses throughout the world realize their full potential.” It focuses on improving its existing products and services, but, as shown by its added business segments, Microsoft moves wherever customers flock. It engages customers, competitors, and creativity. Therefore, if Intel’s mobile chips continue to be more cost- and power-efficient for consumers, Microsoft could pursue a partnership with Intel to design its mobile application processors, modem solutions, and graphics processors. If such a deal occurs, ARM may be in trouble.

Moving Forward

Rattner believes that the future of technology is in wearable devices and that Intel can be a primary player in the market. To remain competitive, though, Intel must grow within the mobile market, diversify income streams, and monetize R&D projects. If Intel meets these marks, investors are in for the ride of their lives.

Brendan Marasco has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft.

The article Intel Is Fueling for the Ride of Its Life originally appeared on Fool.com.

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