Intel's Atom Chip Faces Supply Squeeze
Not so long ago, many financial analysts were not even including any contribution from Atom in their revenue models. That was when the chip was deemed as primarily a processor for souped-up cell phones, a market replete with entrenched players like Texas Instruments (TXN) and Qualcomm (QCOM) that Intel has struggled to crack in the past.
With the success of the Eee PC however, Intel may have found a market that's ideally-suited for its newest processor. Unlike the cell phone market, the PC industry -- from hardware to software -- is already standardized around chips based on Intel's x86 architecture. And while the Atom still runs at a higher wattage than what's required for cell phones, the chip's power consumption is significantly better than that of today's existing laptop chips.
At a briefing with financial analysts in March, Intel said it had commitments for Atom-based netbooks from virtually every major PC maker.
While Intel has acknowledged the gross profit margin for Atom processors is below that of its other microprocessors, the company says the chip can still be sold at a healthy profit margin.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV