The Computer Chip Assignment (add references and citations compulsory)

1. 1) You must do more reading and get more information. No more vague opinions.
2. 2) Give details of revenue and profit and find out why they changed.
3. 3) Use and show credible sources.
4. 4) Compare the chip makers financially - revenue, profit, etc.

The manufacturing of chips has spawned a huge and successful industry. But, lately, times have proven quite difficult for the leaders. Inventories are way up. Sales of certain types of products are way down. Margins in the once profitable Personal Computer space are quite low. Major companies are laying off employees. Smartphone sales are down. Apple is now up to I-phone 14, but each release, while it promises significant upgrades, seems to generate less interest than the last release.

 

HP and Dell, Nvidia, Qualcomm, Micron Technology and the makers of a range of computer games and gadgets have hit a major speed bump. For example, videogame sales fell nearly 20% in the first half of 2022. Christmas sales were disappointing for makers of a range of video games. Manufacturers avoid giving detail on sales of Play Station, which were disappointing. It appears the Harry Potter frenzy and the mob of students wanting to learn Graphic Design and work for Disney have evaporated. 

 

Prepare a financial analysis paper on Intel (INTC), a NASDAQ listed company with a substantial market capitalization. 

 

Here are the issues to cover:

 

1. Provide detail on Intel's profitability for the last three years and its prospects for the next year. Be specific. Identify the major product areas Intel is involved in and the prospects in those business areas.

2. What FINANCIAL actions are being taken by Intel to protect its future prospects? 

3. How accurately did Intel predict demand for its products (chips) and supply(the products it actually produced) in the last three years?

 

4. How attractive is Intel as an investment compared to Micron Technology, HP, Dell, Nvidia and Qualcomm other leaders in the chip-making industry. 

 Use credible sources - Wall Street Journal, Forbes, etc. Do not rely on opinion -personal or material from blogs. Provide facts. If analysts misread the trends, indicate what happened. 

 

5) How did analysts make a mistake on demand for this massive industry, if they did?