Intel leads the semiconductor market – good news for investors


Dec. 4 2020, Updated 10:50 a.m. ET

Intel leads the semiconductor market

According to Gartner, Intel (INTC) dominates the semiconductor industry. It’s followed by Samsung. As the following chart shows, Qualcomm (QCOM), SK Hynix Semiconductor, and Micron Technology, Inc. round out the top five players in the semiconductor market.

If you want to gain exposure to Intel, you can consider investing in the Technology Select Sector SPDR Fund (XLK). Intel makes up about 3.55% of this ETF.

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2014 revenue hit an all-time record

In fiscal year 2014, Intel’s revenue of $55.9 billion—a growth of 6% on a year-over-year, or YoY, and quarter-over-quarter basis—hit all of its previous records. Improvement in its PC Client Group, as well as expansion into new geographies, brought this favorable revenue growth.

In 2014, Intel’s PC business recorded a 4% and 25% increase in revenue and operating profits, respectively. This is despite the severe competition in the PC market. The PC market is flooded by Google (GOOG) (GOOGL) chromebooks and Microsoft (MSFT) Windows Systems. They start at $199 and $249, respectively. Sprout is an innovative system. It has also been received well in the PC space.

Intel’s push into the tablet and phablet market also seemed to work in company’s favor. Intel’s Core M line of processors along with Core i3, i5, and i7 processors are specifically designed for tablets, fanless ultraportable devices, two-in-one tablets with detachable keyboards, and traditional notebooks.

According to Intel’s CEO Brian Krzanich, market reception to date has been strong for Intel tablets. He said, “There is a strong brand value just in Intel tied to a tablet, no matter who is the manufacturer.”

1Q15 expectations

Intel stated that it expects 1Q15 to be in the mid range of $13.7 billion.

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