Intel is a Mobile Chip company

I was reading a Forbes blog entry on Intel and the Atom chip.

Intel Should Be $26 But Not Because Of Atom Chips

Nov. 1 2010 - 5:17 pm | 6,417 views | 0 recommendations | 0 comments

posted by TREFIS TEAM

Intel's Atom is a market share champ but doesn't do much for the stock price.

Since their launch in 2008, Intel’s Atom microprocessors have dominated the global netbook market. In addition to netbooks, the Atom microprocessor is used in a variety of other places including smartphones, tablets, car infotainment systems, smart TVs, low power consuming servers, and energy management systems.

Despite this, Atom’s rising market share will have minimal impact on Intel’s stock since these ultra low voltage microprocessors account for only around 2% of Intel’s stock price, based on our estimates. Intel’s Atom competes with AMD’s Athlon Neo, Qualcomm’s Snapdragon, andNvidia’s Tegra microprocessors. We currently have a Trefis price estimate of $26.50 for Intel’s stock, about 32% above the current market price of $20.

So where is the value of Intel stock (Note earlier this year I sold all my Intel stock when it was at 24 and luckily bought back when the stock was at 4)?  Check out this graphic from Trefis.

If you combine Notebook processors with Mobile chipsets you get 53.5% of Intel’s value.

Never thought of Intel as a mobile chipset company.  Energy efficiency is much of what Intel discusses even in its server chips.  Doing more with less energy is the future.