Ashraf Eassa
Long/short equity, contrarian, independent research, tech

Altera: 20-40% Upside As Intel Foundry Deal Drives Market Share Gains And Sentiment

In the high-end FPGA ("field programmable gate array") space, there are two primary competitors: Altera (NASDAQ:ALTR) and Xilinx (NASDAQ:XLNX). For years, these two companies have largely been equals in the high-end FPGA space, driven by the fact that both have been constrained by the laws of physics, which suggests that given similar development resources and the same transistor technology, the companies are likely to develop comparable products. However, with Altera's announcement in February that it would be moving its high-end FPGA line to Intel (NASDAQ:INTC) Custom Foundry, utilizing Intel's latest 14 nanometer process technology, it is my belief that Altera is poised for outsized market-share gain in this space, which could drive over 30%...

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