The 1 Storyline You Must Watch From Intel's Earnings

Before you go, we thought you'd like these...
Before you go close icon

Tech earnings season kicked into high gear tonight, with companies worth of one-third the value of the entire technology sector reporting. One company that should have caught investors' eyes is Intel. The company managed to beat earnings estimates and also pointed toward better-than-expected demand in the year ahead.

However, as senior technology analyst Eric Bleeker notes, while investors might cheer Intel's beating earnings this quarter, the important thing to watch is the long-term storyline in emerging markets. On its call, Intel highlighted that 20% of PCs are now sold in China and that it saw a 15% growth rate in the country last year. Throw in huge growth rates in other markets like Indonesia and India, and a striking observation comes forward:

The PC might be dying in America, but it's thriving in the rest of the world.

That storyline should mean Intel outperforms software peers like Microsoft, which can't as easily profit from these markets, while other semiconductor plays with exposure in China, like AMD, NVIDIA, and Marvell, can ride the trend of surging technology demand in these emerging markets for years to come.

Foolish bottom line
Intel's just one player in an emerging revolution set to redefine technology. The Motley Fool has a just-released free report on mobile named that details a "hidden" component play inside mobile phones that also is a market leader in the exploding Chinese market. Inside the report we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, but you can be among the first to access this just-released report by clicking here -- it's free.

At the time this article was published Eric Bleeker owns shares of NVIDIA. The Motley Fool owns shares of Intel, Marvell Technology Group, and Microsoft.Motley Fool newsletter serviceshave recommended buying shares of NVIDIA, Intel, and Microsoft, writing puts in NVIDIA, and creating a bull call spread position in Microsoft. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners