INTEL CORPORATION (INTC)

Rishab Negi

Intel Corporation: Background Produces microprocessors, motherboard

chipsets, network interface controllers, flash memory, and graphics chipsProduces 75% of all computer

microprocessors50 offices in U.S.Employs 100,100

Founded in 1968 Headquartered in Santa Clara, CA

Intel Corporation: Basic Numbers

Current Price: $20.83 P/E Ratio: 9.10 Beta: 1.06 Dividend/ Yield: $0.22/ 4.32% EPS: $2.29 52-Week Low: $20.82 52-Week High: $29.97 Market Cap: 103.65 Billion Institutional Ownership: 63%Taken from http://www.google.com/finance?q=intc&ei=9DKcUIC7FqKelwOzUg as of 11/08/12

Intel Corporation: Recommendation Buy: Limit at $21, 5 shares – Buy ASAP Sell: March – June 2013, depending on

“Haswell” release

Intel Corporation: Marketing Strategy

Intel Corporation: 1 Month

Intel Corporation: 3 Months

Intel Corporation: 6 Months

Intel Corporation: 3 Year

= March-June

= November-December

Intel Corporation vs Competitors, 3 Month

TXN

NVDA

AMD

INTC

3 Year Graph Analysis

Shows trend of stock value increasing between November and April-June

Stock is heading towards lowest point in 52 week cycle

Intel Corporation: Earnings Report

Q3 2012 Q2 2012Revenue $13.5 billion $13.5 billion

Gross Margin 63.3% 63.4%

Operating Income $3.8 billion $3.8 billion

Net Income $3.0 billion $2.8 billion

Earnings Per Share 58 cents 54 cents

Intel Corporation: Reasons to Buy World’s largest semiconductor chip maker

based on revenue and market share Post “Tick” phase – “Ivy Bridge”

Shrinking of old microarchitectureValue of stock decreasing

Approaching a “Tock” – “Haswell”New michroarchitecture releaseValue of stock will increase, according to

previous trends

Intel Corporation: Reasons to Buy Offices in over 45 countries spanning 5

continents – multiple markets Intel based smartphones already offered

in several countries (France, Germany, UK, Brazil) – soon to be offered in the U.S.

Several Intel based tablets already released (HP Slate 2, Samsung ATIV), more to come

Intel Corporation: Reasons to Buy Backed up by many well known PC

manufacturers (HP, Dell, Lenovo, Sony, Acer, Asus, Gateway, etc) as well as Apple

Reaching lowest point in 52 week cycle Continues to dominate PC processor

market with a 75% market share Good track record, proven to make profit

for investors – 5 stars from “The Motley Fool”

www.fool.com/quote/nasdaq/intel-corp/intc

Intel Corporation: Competition Advanced Micro Devices Inc(AMD)

Market cap of only 1.5 Billion 25% market share vs Intel’s 75% Backing out of direct competition

Texas Instruments Inc(TXN) Market cap of only 32.49 Billion Makes calculators and smartphone processors

NVIDIA Corporation(NVDA) Market cap of only 7.99 Billion Makes GPU’s

Intel Corporation: Competition EPS for Intel

unmatched by competitors: $2.23 for Intel vs $1.53 for TXN, $0.77 for NVDA, and -$1.20 for AMD (Google Finance)

Best investment in semiconductor chip market

Citations http://seekingalpha.com/article/855481-amd-

versus-intel-not-a-fair-fight https://

www.google.com/finance?client=ob&q=NASDAQ:INTC

http://en.wikipedia.org/wiki/Intel http://money.cnn.com/quote/competitors/com

petitors.html?symb=INTC http://www.fool.com/quote/nasdaq/intel-corp/i

ntc http://en.wikipedia.org/wiki/Intel_Tick-Tock http://www.intc.com/results.cfm http://files.shareholder.com/downloads/INTC/

2156234021x0x605849/bf8bc94b-41a4-4f29-8696-ddb0fa7c55e3/INTC_12Q3_Earnings_Release.pdf

http://www.intel.com/content/www/us/en/location/usa.html