Friday, January 15, 2010

Speculation: Intel edition

At about this time last year, Intel’s board decided to speculate with invest $7 billion in new chip plants in Oregon, Arizona and New Mexico.

...Today, Intel’s speculation bet on the future is looking as if it will pay off big. The first chips from the plants arrived this month, made with techniques that let the company create smaller, faster and lower-power products than its main competitors. Just as it has in past downturns, Intel has used its hefty pile of cash to advance its manufacturing prowess and technology while rival chip makers have struggled to stay afloat.

...On Thursday, Intel, the first major tech company to report earnings, said that revenue rose 28 percent to $10.6 billion in the fourth quarter, and the company earned the largest gross profit margin in its history. Net income was $2.3 billion, or 40 cents a share, up tenfold from the $234 million, or 4 cents a share, it earned in the last quarter of 2008.
Intel made a bet and it's now winning big. Good for them.

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