Intel Rises on Embrace of Google's Chrome

Intel is leading the Dow Jones Industrial Average by a wide margin today after announcing a number of new Google Chrome-based products.

May 6, 2014 at 3:30PM

Intel (NASDAQ:INTC) was the only Dow Jones Industrial Average (DJINDICES:^DJI) member company in the green in late trading Tuesday. The chipmaker's 0.36% rise is notable because the Dow as a whole is down 0.64% and tech stocks are leading the slide.

Investors continue to sell off high-priced tech growth stocks, which tends to drag down the overall market. But keep in mind that tech companies that make boatloads of cash are still doing quite well this year, with Intel beating the Dow and Nasdaq overall.

Intel bets big on Cromebooks
Google's (NASDAQ:GOOG)(NASDAQ:GOOGL) Chrome operating system is becoming a major partner in the PC business, a far cry from the Wintel days of the past. That's why today's announcement of a number of Chromebook products based on Intel's Celeron chip, which is derived from the Bay Trail design, is key for the company's future.

The PC has been a drag on Intel's earnings for years, and a move into mobile has yet to play out completely. But Intel could have an advantage over competitors in building inexpensive PCs, and that's where Google's Chromebook comes in.  

Intc Wearable Image

Intel is searching for new growth markets and is putting a lot of effort into wearable devices like this one. Source: Intel.

This isn't going to be a game changer overnight for Intel, but IDC estimated that 2.5 million Chromebooks were sold last year; that number is expected to grow to 4.2 million this year.  

For Google, the addition of more PCs would be a feather in the hat, but for Intel the PC remains a legacy product it wants to protect. Intel isn't winning in mobile the way its executives hoped, and analysts have even called for the company to give up on that sector and open up foundries for third-party designers, as many other chipmakers do.

The win in Chromebooks could be a bridge until mobile or wearable chips begin to contribute a significant amount to revenue and income, which probably won't be until well into 2015. Until then, I'm holding on to shares for the dividend and upside potential of these new products.

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Travis Hoium manages an account that owns shares of Intel. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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