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Intel Aims to Stem Red Ink in Mobile Division with German Chipmaker Buy

Intel makes an acquisition as it works to stem losses in its mobile division.
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Intel makes an acquisition as it works to stem losses in its mobile division.....It's today's chart of the day. Intel has historically made chips that perform calculations in personal computers and server systems. But its been building a presence in the mobile market. But its been a money losing proposition to date. Last year, Intel's mobile business lost a little over 4 billion, wider than the 3 billion in red ink in 2013. Management has expressed that these losses will be mitigated this year and next. To that end, Intel is announcing an acquisition. The chipmaker has agreed to buy Lantiq, a maker of communications chips from Golden Gate Capital. Lantiq, based in Germany, makes chips and software used for broadband communications in, for example, your Sprint smartphone. Adding Internet connections to everything from soccer balls to devices that control a smart home is the area of critical expansion for companies like Intel. Intel stock has been on an upward trajectory in the last year. At its low in the last 52 weeks, the stock was at 24 bucks a share. It's trading about $33 a share.

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