It will be very difficult for Intel (INTC) to again have the kind of profitability and growth it enjoyed as the standard-bearer of the semiconductor revolution. Competition has grown. The demand for semiconductors has become so large that no one company will be able to dominate whole segments , as Intel [once] did in memory chips and microprocessors. At least five or six companies will be splitting up that silicon pie into more equal slices.
Does this worry sound familiar? Have fears of AMD soured your taste for Intel?
Here’s something to think about: the above quote is from the March 30, 1981 issue of Forbes. Since then, shares of Intel have increased roughly fifty-fold in value. This is true despite a 23% drop in Intel’s share price over the past 52 weeks and without accounting for dividends the company has paid.
"Those who do not learn from history are doomed to repeat it."
INTC chart, 1981-present:
For more of our thoughts on Intel, see this post.