Intel Corporation (NASDAQ:INTC) is one of the biggest semiconductor chip corporations in the United States and in the world today, based on both distribution of products and in revenue. Working in the integrated electronics industry, Intel manufactures and distributes motherboards, network interface materials, flash memory, integrated circuits, processor parts, and graphic chips.
Market Share and Profitability
Indexed on NASDAQ with the symbol INTC, the company's market capitalization is estimated to be around $140.84 billion. A majority of Intel shares and stocks are publicly traded using the following indices: SOX, Dow Jones Industrial Average, NASDAQ-100, S&P 500, and Russell 1000 Growth Index.
The company is recorded to have gathered its highest earnings during the second quarter of 2008. During this quarter, Intel Corporation gathered a total income of $9.8 billion. The company recorded an operating income of $2.3 billion and a net income of $1.6 billion, bringing its earnings-per-share to hit 28 cents. Intel's net income for this quarter is calculated to have risen 11 percent compared to the first quarter of the same year.
Intel Corporation tops the list of the most well traded stocks with its stable rate of profitability. Latest findings show the company's profit Gross Margin falling on a comfortable 61.55, its Operating Margin at 27.59, its Pretax Margin at 27.88, and its Net Margin at 20.63. Intel Corporation's Return on Assets is at the 14.16 and its recorded Return on Equity is at 22.66. Return on Total Capital and Return on Invested Capital are at 18.67 and 18.76, respectively.
Latest Corporate News
Intel Corporation is eyeing an expansion in its Israeli branch, with sources confirming its move of taking over Micron's Israeli laboratory. The company recently confirmed that it would be hiring 800 full time and 200 contractual employees in Israel in an effort to power its 10nm chip manufacturing plant. This strategic move follows Intel's shutting down of its Boise-based operation during the past year. The company is set to take full possession of the facility and is planning to upgrade its machineries in order to meet the demands of production.
These manufacturing decisions factor in on Intel Corporation's goal of increasing its shares in the Smart-Grid Market share to $5 Billion. As a response to the rising demands for key energy-saving technologies, the company is eyeing to take a significant chunk of the market by the end of this decade. Intel is confident that their history and experience in manufacturing microprocessors are their leverage towards achieving this goal before their competitors do.
Intel Corporation also continues its spree of buying like-minded companies with its latest acquisition: Sensory Networks, a maker of pattern matching and recognition software. To further expand its capacity in the core processor industry, Intel recently acquired the start-up Sensory Networks for $20 million. The newly-acquired benefits are geared to improve how Intel's products use firewall features and detect spam and computer viruses.
With Intel Corporation's solid financial footing, consistently expanding profit margins and increasing stock pile, and reasonable recorded debt, stocks from this company are seen to be one of the strongest ones on today's market. This is besides the fact that the company shows a marginally weak growth in the Earnings per Share area.
Intel Corporation has recorded a drop in its revenue by 5.1%. This change in number had an effect on its productions' bottom line and has caused a decrease in its recorded earnings per share. However, despite this, the company still manages to outperform the industry average when it comes to revenue.
The margin marked for the company's gross profit is currently high at 73.30%. While it is a fact that its current number is lower than the number recorded from the same time last year, the fact remains that its net profit margin is still up-to-par with the industry baseline.
Unlike its competitors, Intel's debt-to-equity ratio is low, comfortably placed at 0.25. This number is far below the industry average, citing and proving the effectiveness of the company's debt management measures. This number and findings also solidifies Intel Corporation's ability to cover its needs, particularly its own short-term liquidity demands.
When it comes to Intel Corporation's ROE, its current number is lower than its record from the same time last year. Despite this, its return on equity far exceeds the industry average and the numbers recorded and tallied from other semiconductors and semiconductors equipment companies.