Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:
Intel's Impressive Meeting by Bill Alpert
Summary: At a conference Thursday, Intel (NASDAQ:INTC) told analysts that over the next year, it will shifting chip production to transistors with features as small as 45 nanometers, bad news for AMD (NASDAQ:AMD), because it will enable Intel to beat it with cheaper or more feature-packed chips. In the last half-year, Intel has been regaining market share from AMD. Cost-cutting measures will trim $3 billion in capital spending over the next two years, and Intel says it can re-use 90% of its last-generation capital equipment for the newer chips, bad news for chip equipment makers Applied Materials Inc. (NASDAQ:AMAT), Novellus Systems Inc. (NASDAQ:NVLS) and KLA-Tencor Corp. (NASDAQ:KLAC). Its Silverthorne ARM chip, due within the year, will be software-compatible with all Intel chips, but require just a quarter of the space and power. Intel ultra mobile manager Anand Chandrasekher says mobile internet will be a $10 billion market for chipmakers by 2011, and he's confident the company's Silverthorne line will beat chips from competitors ARM Holdings (ARMHY), Qualcomm (NASDAQ:QCOM) and Texas Instruments (NASDAQ:TXN), not least because of their compatibility.