Intel Corporation is a multinational corporation and technology firm based in Santa Clara, California. The company supplies microprocessors plus multichip and system-on-chip products. They also offer NAND flash memory products mainly applied in solid-state drives and programmable semiconductors. Intel’s products and services are offered across different markets such as data center,communications,and automotive,military and industrial markets. The company is recognized for the invention of the *86 series of microprocessors which are installed in most personal computers (Statista). The company supplies its processors to companies manufacturing computer systems including; HP,Apple,Dell, and Lenovo. Intel is also involved in the manufacture of network interface controllers,integrated circuits, motherboard chipsets, and graphics chips.

In recent years, Intel has become one of the leading semiconductor companies globally. Despite the emergence of many other companies offering similar services such as Samsung, Advanced Microdevices, Silicon Integrated Systems, and Toshiba, Intel has always been among the top 20 semiconductor companies. The company had a 13.8 percent market share in 2018 and collected 476.7 billion U.S dollars in semiconductor revenues worldwide. Looking at the company’s market price, the latest historical data from NASDAQ indicates Intel’s stock prices closed at $48.84 as of 8^th February 2019. This is an increase from the value recorded at the end of 2018 which stood at $46.93 (NASDAQ). Intel’s market capitalization, on the other hand, stands at $219,633 million as of today. A steady increase in their market cap value recorded at the quarter that closed the previous year which was $214,189 million. The company’s yearly market cap increased from December 2016($171,557 million) to December 2017($216,352 million) (Y charts). However, the company saw a decrease in their market cap in 2018 to ($214,189 million).

Intel’s historical stock returns in the last six months appear as follows in the following graph;

The company has recorded periods of varying stock prices over the period. Intel’s stock value has been steadily shifting between the six months but not with a range of more than one dollar from one month to another. In addition to this, between the six months, Intel has recorded an increase in the amount of stock prices in the opening and closing figures in each month.  The surge inIntel’s stock value is attributed to the increased competition from other companies manufacturing microprocessors. Also, more people are shifting to graphics chips in many data centers to undertake AI tasks and are moving away from the microprocessors commonly used.

Intel’s ratio analysis

When looking at a company’s financial position, it is important to review its ratio analysis. Some of the factors to consider while conducting the analysis include the return on assets (ROA) and return on equity (ROE). The ROA assists investors’ measure how a company manages its resources or assets to make more income while the ROE aids investors to measure the amount of income generated by their investments (Y charts).  The ratios are obtained by applying the procedures; ROA= net income/total assets and ROE= Net Income/Total Equity. In this case, the ROA for Intel Corporation according to data obtained from their 2017 financial records is $9.601(net income)/$123.2(Total assets) which is 0.077.  The company’s ROE, on the other hand, is $9.601(net income)/$69.01(Total equity) 0.13.

References

NASDAQ. Historical Stock Prices. 08 February 2019. https://www.nasdaq.com/symbol/intc/historical. 09 February 2019.

Statista. Intel’s market share semiconductor revenue worldwide from 2008 to 2018. December 2018. https://www.statista.com/statistics/294804/semiconductor-revenue-of-intel-worldwide-market-share/. 09 February 2019.

Y charts. Intel Corp Market Cap. February 2019. https://ycharts.com/companies/INTC/market_cap. 09 February 2019.

 
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