In this Motley Fool Live clip from "Semiconductor Revolution," recorded on Jan. 20, Fool contributors Will Healy and Billy Duberstein outline some of the advantages that Intel (INTC -9.20%) has over its competitors to spur future success.
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Will Healy: AMD doesn't have a fab, whereas Intel does not have that problem. In a lot of ways a company like AMD (AMD 2.37%) or Nvidia (NVDA 6.18%), they're dependent on TSMC (TSM 1.26%), so if TSM or Samsung fails them, they could be in a lot of trouble, whereas Intel, if they can make their chips and recapture the technical lead, that could be a very powerful value proposition.
Another point to remember is Intel is still huge, they are the second-largest producer in the world. The article I'm going present later is going to touch on this. In terms of production, they are bigger than AMD and Nvidia combined, much bigger in fact.
Actually, Intel and Samsung have been fighting for the lead for the last few years. Intel, they're not what they were, but they're not declining and they may reascend, time will tell. Hopefully, this latest earnings report will give us some insight into that.
Billy Duberstein: You know there's a lot of people that would like to see Intel succeed in this endeavor too. I'm sure all the chipmakers out there don't want to only have one single outsourced fab that can produce their chips, they would probably like to have two or three they can play off of each other. Also, the U.S. government has a pretty big stake in wanting Intel to succeed. I wouldn't count it out, it's just it's going to take years.
Healy: Agreed.
Duberstein: If you want your stock to be going up a lot in a short amount of time, it could happen, there could be some sort of announcement. I'm sure Pat Gelsinger will sound very confident on the call. I'm just a little skeptical this stock is going to move very much until we get more.
Healy: That's the problem with Intel stock is there's just no catalyst right now. Until we see some proof that they've caught up in some areas, I don't really see there being a catalyst, but 10 times earnings, it might be worth of speculative play too, but I wouldn't put a whole lot of money into this right now.
