In this video, analyst Andrew Tonner discusses Intel's (NASDAQ: INTC ) recent earnings release and what investors should take from it. Although the company beat earnings this quarter, Intel is suffering from a contracting PC market which makes up its core business.
The company is the dominant manufacturer of microprocessors and CPUs in the PC market -- and it has pricing power there -- but the market has been gutted by other devices with much more growth, such as smartphones and tablets. The semiconductor stocks exposed to those industries have performed remarkably well. Intel hasn't been able to grab a piece of those markets the way Qualcomm (NASDAQ: QCOM ) and NVIDIA (NASDAQ: NVDA ) have.
Currently, Intel stock sits at a 52-week low. That could indicate an oversold stock with potential to rise, but the company's own statements have reduced guidance for Q4 and reduced guidance for the full year, pushing shares lower and lower. As Andrew points out, there's potential for Intel to break away from its core business and venture into a market with more growth, but the company hasn't had the decisive will to do it.
With changing technology and changing consumer tastes, Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Better yet, you'll continue to receive updates for an entire year. Click here now to learn more.