I am not saying Intel is going to the dogs, it is just that it has peaked in terms of market share, margins, sales growth, profit growth, and consequently returns for stock investors.
Intel will pretty much maintain more than 50% market share overall, but what will impact its share price is how it gets there. If its market share drops from 84% to 54%, then its share price is going to reflect that very quickly. Now those numbers are at retail, but it's ominous.
Any other company clawing its way from 10% market share to 25-35% market share, however, will see its share price rise.
Intel is a core holding, yes. But I think most investors will want to buy it when the market share has dropped to about 60%, to avoid having to ride it down the curve. |
