In the early 2000s Intel’s advanced processors helped the company scoop up a dominant market share and claim the title of the U.S.’s top chipmaker. A lucrative partnership with Apple, Inc. (AAPL) in 2005 saw sales of Mac computers double, and helped propel INTC stock more than 268% higher over the last 15 years.
But since early 2018, INTC shares have been unable to continue the upward momentum, bouncing around the $50-60 range for the last two years.
Much of Intel’s failure to maintain its commanding lead over the semiconductor industry can be traced back to missteps by management. But in recent years, several new competitors have made huge headway in taking market share away from Intel.
And there’s one company that I believe will continue to make the biggest strides in growing out from under Intel’s shadow.
For all of the success Intel has had in the computer space, the biggest mistake it ever made was passing on the opportunity to be the supplier of chips for the iPhone when it was first being developed. Intel executives believed that the return from sales would not be worth the development costs.
As the world pivoted away from computers to more mobile devices like smartphones, Intel saw its grip on the semiconductor market begin to slip. New competitors began ushering in advanced microchips while Intel struggled to keep pace.
In fact, experts project that Intel is now roughly two years behind in development compared to its biggest rivals.
That’s opened the door for another U.S.-based semiconductor firm to start taking market share away from Intel in a big way.
Advanced Micro Devices, Inc. (AMD) is a semiconductor producer out of California that has been one of the fastest-growing tech companies in America over the last year.
AMD has been making serious strides in its fight against Intel to be the top dog in the U.S. semiconductor space with its recently released Ryzen line of processors seeing huge demand in the gaming and graphics card markets.
As of April 2020, AMD held roughly 21.7% of the market share. One year later, that figure had grown by an additional 7.7%.
As more and more devices rely on advanced chips, the sky is the limit for AMD. Revenue in Q1 2021 was up 93% year over year, while EPS rose from $0.14 in 2020 to $0.45 in 2021.
I believe Intel’s market share will continue to slip in the coming years as AMD cements its status as the top semiconductor developer in the country. I like AMD as a buy on any pullback.
Trading tip of the week
Earnings season happens 4 times a year – and this represents a volatile time for traders in the market.
Personally, I never care about what the top and bottom line is when looking for short-term profit opportunities.
All I care about is how the stock performs on earnings. That is why I look at historical volatility to determine this. Determining whether a stock typically rises or falls following an earnings report is key to anyone looking to trade around earnings reports.
Earnings report to watch
As shares of Tesla, Inc. (TSLA) continue their slide since late January, tomorrow’s Q2 earnings report could go a long way towards finally finding a floor.
But don’t hold your breath looking for a significant beat this quarter.
Tesla has been hampered by production shortfalls lately due to battery and chip shortages.
While sales and revenue are both expected to increased from the same period a year ago, Tesla’s significant Bitcoin holdings could prove to be a drag, as the crypto market lost nearly half of its value in the last quarter.
I love the long-term potential of TSLA stock, but I’d recommend waiting to buy until after this report to see if the stock can attract any new buyers with its latest results.
Tiny EV Company Set to Shoot Up 10-Fold in the Next 12 Months
A Silicon Valley veteran of over 35 years, Michael Robinson is spilling the beans on what he believes is the electric vehicle industry’s biggest secret.
It’s the story of how a tiny, $2 company is powering the $2,495 billion EV revolution.
This company’s technology is being used by every major EV manufacture on the planet right now. It’ as part of an overall development that is making such a big impact that will likely be discussed during Tesla’s Q2 earnings call later today.
That’s why Michael has filmed this urgent message for you on his cell phone. No studio, no film crew, no green screen. There was simply not time with this opportunity set to explode any day now.
This tiny EV stock has risen 10-fold within the past year. But its incredible run has just begun. This little stock is now seeking an IPO on the big board, which means its 1,147% gain could now be mirrored over the next year.
The clock is ticking. Click here to decide whether you’re in or out.