Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Is Intel Corporation (INTC) Soaring Today?

Page 1 of 2

Intel Corporation (NASDAQ:INTC) is pulling the Dow Jones Industrial Average higher today. The chip titan’s stock jumped as much as 4.8% higher over the weekend and remains the second-biggest Dow gainer in the early afternoon.

When Intel stock makes a big move, it’s typically followed by longtime systems-architect partner Microsoft Corporation (NASDAQ:MSFT), but that’s not the case today. Mr. Softy is outperforming the Dow today, but not by much. This time, Intel is leaving Redmond in the dust.

Intel Corporation (NASDAQ:INTC)

That’s because Intel’s catalysts don’t really include Microsoft this time. It’s not a glowing report on PC or server markets, nor a sales-boosting new WinTel system or product line, which used to be the typical driver of both stocks. Intel Corporation (NASDAQ:INTC) did present a brand-new desktop chip over the weekend — a reworked version of the portable Haswell design — but nobody expects these chips to jump-start stalled sales of Microsoft Windows 8 systems.

Instead, mobile-leader Samsung just introduced a new tablet with Intel chips inside — and no trace of Windows software in sight. The Galaxy Note 3 tablet will run Google Inc (NASDAQ:GOOG)‘s Android system, like earlier installments in the Samsung Galaxy series. This is Intel’s first design win in a major mobile product, outside of a few not-so-relevant smartphones and tablets made by Chinese vendors for the Chinese market.

If Samsung’s Galaxy Note 2 is any indication, the Note 3 will indeed be a big seller. The Note 2 moved 5 million units in its first two months on the market, and those are huge numbers for an individual Android product. Google and manufacturing partner ASUS could hardly make enough Nexus 7 tablets to meet demand in 2012 and ended up with about 5 million units sold. Android tablets match Apple Inc. (NASDAQ:AAPL)‘s market-leading iPad blow for blow these days, though mostly through strength in numbers.

Landing the contract for one of the hottest products in the tablet space is a nice start, but more importantly it could signal the start of Intel’s entry into the smartphone space. That’s still where the real mobile volume is. iPads may be Apple’s hottest growth product, but iPhones still outsell the tablet by a nearly 2-to-1 ratio. And while Android tablets are catching up to the iPad, Google’s little green robots have crushed Apple’s phones in terms of market share for years. For a component supplier like Intel, volume matters far more than high retail margins on the final product.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!