Intel Corporation (INTC): This Chip Maker Is Branching Out

Intel, however, is still suffering under the image of being a late mover. That’s a well-deserved heckle, but one that the company is looking to shed. And it has the money to support that effort, with some $18 billion in cash and investments. While the company’s debt load is material, at around $13 billion, that still leaves the company with a net cash position of $5 billion.

Late, but not Absent

While Intel and Google have been working to make Android capable chips for several years, it is only now that the partnership is starting to heat up. At the Mobile World Conference, the company announced a full slate of mobile targeted chips and chip deals with Etisalat and ASUS.

These are good steps in the right direction for Intel. And, like Microsoft, the company can create a large business without ever touching the developed markets. The high-end market is important, but there are a lot more people in the world that can only afford less expensive devices. Even Apple is looking to offer a stripped down version of its iPhone in an effort to tap this group of customers.

Unlike Microsoft, Intel will probably find it easier to gain traction in developed markets once its mobile chips prove their worth. That’s particularly true based on the Android connection, since that operating system has a market share that is multiples of Apple’s OS for cell phones. And Android is also on a clear path to trump Apple in the tablet market.

A Good Buy

With such a broad market, Intel will have plenty of potential hardware partners to hit up for contracts. Intel may be late to the mobile game, but it looks set to catch up quickly. With a dividend yield around 4%, a still dominant position in personal computers, and an aggressive push in the mobile space, Intel looks like a good option for just about any investor.

The article This Chip Maker Is Branching Out originally appeared on Fool.com and is written by Reuben Gregg Brewer.

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