Low average chip prices for tablets
The win for Android tablets and Windows 8 tablets bode well for Intel, but the ASP (average selling prices) remain low. The worry of low margins is also holding back Intel shares. The worry is unfounded, because Intel will increase its R&D to develop less expensive ways to develop mobile chips.
The low multiple for Intel makes the chip maker a company to hold. The PC market may be mature, but the Haswell chip refresh will initiate another cycle of upgrades. Intel is also slowly, but steadily, building its position in the mobile space. Any profit taking in Intel shares should be viewed as an opportunity to consider being bullish in Intel shares.
Written by Chris Lau, Kapitall Contributor
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV