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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Renee James: The Key to Intel's Succession

Stocks in this article: INTC DELL HPQ FSLR AAPL QCOM ARMH

The elephant in the room here is Apple (AAPL), now the world's biggest buyer of CPUs, and a longtime customer of Samsung and Qualcomm (QCOM). Intel's future now depends on getting deeper into Apple's pockets. Apple has gotten so big that papers like The Guardian have speculated it could just buy out Intel.

That's not going to happen. But two things are needed to get the Apple account -- an ability to negotiate deals and a willingness to talk software. Krzanich may run a great factory, but he lacks both of those skills. James has them.

I heard TheStreet's Jim Cramer on the TV recently saying that Intel made a huge mistake in buying McAfee, the security software outfit James now runs, and not buying ARM Holdings (ARMH), whose low-power chip designs are now licensed to a host of Intel's fabless competitors, including Apple and Samsung.

I doubt James even now has the power to do an ARM deal, but given how few companies there are now that run their own CPU fabs -- there are four -- chances are Intel has already produced ARM designs for someone, and could easily do it for someone else.

If, that is, Apple were given the same autonomy in design that Samsung gives it, along with the full software resources of a company Intel's size.

I've written before that Intel should be broken up, along hardware-software lines. Functionally, this succession does that. The question is whether James can take advantage of it, managing Krzanich, managing this change, managing Apple, and transforming Intel from a PC chip company selling to OEMs into a provider of chip-based solutions to customers' problems.

At the time of publication, the author was long AAPL.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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