The following video is part of our "Motley Fool Conversations" series, in which we talk about topics around the investing world. This time, Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova talks about the one number Intel (Nasdaq: INTC ) investors need to be tracking this year.
The world's leading chipmaker is in a worldwide struggle with ARM Holdings (Nasdaq: ARMH ) to be the top supplier when it comes to mobile devices. Progress is coming, but too slow for shareholders. First-quarter revenue met expectations while coming in $0.03 ahead on earnings. Investors nevertheless sold on fears that sharp demand for tablets would take a toll on results this year.
Worse, years of efforts to promote its small-scale Atom designs haven't swayed smartphone makers away from ARM. Lenovo and Motorola Mobility won't have smartphones using Intel chips until the second quarter, while computer partner Apple (Nasdaq: AAPL ) still uses the ARM core for its A5 and forthcoming A6 chipsets.
But the big battle is still to come. Just as Intel is spending billions to get its chips embedded in handsets and tablets, ARM is making a play for the PC market and already counts Microsoft (Nasdaq: MSFT ) as a partner. The first Windows 8 machines running on ARM-powered chips are expected to arrive later this year. Which company will see the bigger payoff? One metric will tell the story. See more in the following video.
Although Intel and ARM grab headlines, they aren't the only ones profiting from a worldwide shift to mobile computing. Another company is equally well positioned. You might even call it a multibagger in the making.