Is This Bold Move a Win for This Tech Giant?

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

In this video, Andrew Tonner examines Intel's potential foray into the chip fabrication business. With the PC market in decline, Andrew says, Intel needs to diversify into other sources of revenue, and chip fabrication would be one such source. While Intel has the size, scale and technology to pull this move off, chip fabrication requires a lot of cash to start up, and Intel has no major customer lined up to buy these chips. So while chip fabrication will bring in added revenue, Andrew argues, the startup costs may erode any revenues significantly.

For more, check out the video.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

The article Is This Bold Move a Win for This Tech Giant? originally appeared on

Andrew Tonner owns shares of Apple. The Motley Fool recommends and owns shares of Apple and Intel. Try any of our Foolish newsletter services free for 30 days. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

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.

People are Reading