Tuesday, January 03, 2006

Intel outside

Intel announced a major shift recently to orient itself towards the consumer segment of the market, away from business. This will definitely involve Intel getting into more specialized chip sectors, likely via buyouts.

A pairing of Intel with Texas Instruments and with Analog Devices has been rumored for a while. But I don't see such huge combinations on the horizon.

More probable targets include Omnivision (OVTI), Silicon Image (SIMG) and Sirf Technology (SIRF), to enter into the hyper-growth cell-phone camera and GPS markets.

I own Omnivision and Sirf shares, bought at substantially lower prices. They are now fairly valued, but a healthy premium can still be expected in the event of a takeover.


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