THURSDAY: There have been ongoing observations made by Bill Maurer that Intel relies too muchon its PC market. This surely is recognized by the company’s earnings’ warning. The company should be making more meaningful progress in dealing with Smartphones or Tabs.
No wonder, it would be wonderful to see Intel Corporation(NASDAQ:INTC) get its act together in mobile, but even if management delivers on its seemingly promising year 2016 mobile product road map, it will take time for the company to reap material revenue from the business.
Perhaps it might be time for Intel to buy some revenue. Here are two companies that could be interesting acquisition targets for Intel from both strategic and revenue growth perspectives.
Firstly there is Broadcom, whosemain businesses are its connectivity and broadband group and its networking and infrastructure group. It brought in US$8.43 billion in revenue last year and has a current market capitalization of US$26.47 billion. Also, Broadcom’s networking switches are well ahead of Intel’s, its connectivity combo chips are found in just about every high-end smartphone on the planet, and Broadcom is widely viewed as the leader in set-top box-oriented silicon.
Another acquisition is that of NVIDIA, which might be preferred by Intel, as it currently commands a market capitalization of US$12.49 billion. NVIDIA generated US$3.839 billion in stand-alone graphics processor revenue, as well as US$579 million in Tegra processor revenue. As an Intel investor, a point of interest is in what the stand-alone graphics business could bring to the company.Intel could eventually take NVIDIA’s graphics intellectual property and integrate it into its PC and future mobile processors, potentially enhancing the value proposition of its PC products.
Although it might seem less complicated for Intel to buy these companies and grow its revenue base, integrating a newly acquired business can be difficult.
