Intel Corporation (INTC): Will This Big Announcement Finally Jump Start The Stock?

Going forward
Intel’s hardly alone in mobile processing. Based on market cap, rival chip designer and developer of intellectual property and related software ARM Holdings plc (ADR) (NASDAQ:ARMH) is small compared to Intel — about $19 billion vs. Intel’s $103 billion — but has a strong mobile presence, particularly in the smartphone market. With 90% of the smartphone market running an ARM licensed processor, ARM holds an enviable 31% share of the mobile computing world. But even with a jump-start, ARM doesn’t provide the same stock appreciation potential as Intel. It’s trading at sky-high multiples, with a trailing P/E of 76 and forward P/E of 35. Intel, by comparison, has a forward P/E of 10 and pays a 4.3% dividend yield compared to ARM’s paltry 0.53%.

Another big challenge for Intel Corporation (NASDAQ:INTC) in conquering the mobile computing market was demonstrated by Google Inc (NASDAQ:GOOG)‘s decision to swap out its NVIDIA Corporation (NASDAQ:NVDA) processor in favor of QUALCOMM, Inc. (NASDAQ:QCOM)‘s popular Snapdragon chip for its upcoming second-generation Nexus tablet. NVIDIA’s Tegra 3 chip wasn’t fast enough for Google, according to the rumors, so Qualcomm got the nod. Much of Qualcomm’s impressive mobile market share — 50% of the smartphone market and 86% of the LTE business — uses ARM’s architecture.

And there’s a lot at stake for Intel and its competitors in mobile computing. According to research firm IDC, tablet sales grew more than 78% in 2012 compared to the prior year, and are expected to surpass desktop PC sales for the first time ever in 2013. With potential like that, it’s not hard to see why Intel has to get Haswell into the hands of device makers ASAP.

The competition is fierce for Intel Corporation (NASDAQ:INTC) as it continues its transition to mobile computing. The new Atom processors expected by year-end will help, but Haswell is where the rubber meets the road. If you’re a long-term investor, as many Fools are, exercise some patience, enjoy a 4.3% dividend, and get on board Intel. The best is yet to come.

The article Will This (Finally!) Jump-Start Intel? originally appeared on Fool.com.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Google, Intel, and NVIDIA. It owns shares of Google, Intel, and Qualcomm.

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