This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Intel to Finally Make Money on Atom, Part 2

On Dec. 22, 2009, I wrote an article on describing how Intel (INTC - Get Report) was finally making money on the Atom processor with its new (at the time) Atom N450. The basis of my argument was a press release from the company that "the new single core chip, called Atom N450, is about 60% smaller than present Atom processors and will require 20% less power."

It has come to my attention after searching Intel's Web site that the N450 has a die size of 66 sq. mm, much bigger, NOT 60% smaller, than its predecessor, the N230, with a die size of 26 sq. mm.

Why the smoke and mirrors? Intel has been on the defensive ever since The Information Network in January 2009 questioned whether Intel's slashed revenue of about $1 billion (for the fourth quarter of 2008 and first-quarter 2009) was because of its misjudging the success of the netbook and its Atom processor.

Paul S. Otellini, president, chief executive officer, and director of Intel, made the following statement during Intel's second-quarter 2009 (July 14) earnings call.

"Atom revenue grew a very strong 65% this quarter, reflecting a bit of a snap-back after the inventory correction we saw in late Q4 and in Q1," which suggests to me that Intel conceded to The Information Network's allegations.

Based on new size information, I need to recalculate Intel's revenue for the netbook market. A 300mm wafer will make 1,071 of the new N450 Atoms vs. 2,716 of the old N230. Based on a price of $64 for the N450 and $29 for the N230, each 300mm wafer will generate $68,500 for the N450 and $78,800 for the N230.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ARMH $49.31 -0.56%
INTC $31.30 -0.51%
AAPL $124.49 -1.50%
FB $82.16 -1.20%
GOOG $548.46 -0.65%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs