What Can Haswell and Silvermont Do for Intel Corporation (INTC)?

Intel Corporation (NASDAQ:INTC) is looking to lead the processor market by making a speedy dash towards lower-nm manufacturing — in essence, squeezing more circuits into the same space, in distances measured in nanometers, to create smaller but more powerful chips.

Intel Corporation (NASDAQ:INTC) currently leads the industry by producing 22nm processors, but ARM Holdings plc (ADR) (NASDAQ:ARMH) is looking to intensify the competition by producing its new Cortex chips on a 20nm scale. Silvermont products are expected to be out in full force in the third and fourth quarter of the year, and the markets are counting on Intel to improve upon the poor performance of previous iterations of Atom processors.

Investment Takeaway

Intel seems to have won Samsung as a client; it’s rumored that the tablet maker’s Galaxy Tab 3 will feature an Intel chip. There are also rumors floating around that Apple Inc. (NASDAQ:AAPL) may also convert to Intel for its tablet and mobile chips. However, given Apple Inc. (NASDAQ:AAPL)’s recent commitment to its own in-house chip designs, that’s unlikely to happen in the near future.

The Baytrail chip, designed with Silvermont technology, is likely to be included in a number of Windows 8 and Android tablets, which will help Intel gain traction in the lucrative mobile market. That position will certainly be boosted by Haswell chips.

Intel Corporation (NASDAQ:INTC) stock is up more than 18% in this year so far. The company is in the mature stage, and it may not provide the same astronomical returns as newer, hotter techn companies.However, its stress on innovation and massive R&D layout ensure that the company is going to stay relevant for a long time and the stock is a good long term addition to any portfolio.

The article What Can Haswell and Silvermont Do for Intel? originally appeared on Fool.com and is written by Mitra S.

Mitra S has no position in any stocks mentioned. The Motley Fool recommends Apple and Intel. The Motley Fool owns shares of Apple, Intel, and Qualcomm. Mitra is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.