On Tuesday, December 6, Tristan Yapalater pitched Intel to the class. Tristan explained how Intel is = fundamentally shifting from a PC company to a cloud based computing and internal hardware manufacturing company. Intel has been stepping up its production of semiconductor chips, particularly for the upcoming wave of autonomous vehicles. It is important to note that Intel has also left the 4G mobile semiconductor market; the company has chosen to focus its R&D on the production of the next generation of 5G chips, hoping to gain dominate market share in this new space. Intel also controls 90% of the data center space – selling their technology to massive data powerhouses like Amazon and Google.
Intel has had massive Capital Expenditures in the past few years, hurting its bottom line. The stock price has suffered in recent months because of this loss. Tristan believes that this price drop creates a perfect opportunity to purchase this strong technology company. Tristan motioned to purchase 400 shares of Intel and sell 300 shares of XLK, the technology ETF. The motion passed 22:1.