Microchip manufacturer Intel Corporation (INTC) is in the midst of a crossroads as it searches for a new CEO and adapts to the current industry landscape.
Intel has struggled to keep up with the changing environment for microchip makers. For years, Intel has prided itself in making top of the line technology for PCs; it shied away from manufacturing chips on the behalf of other companies. However, as the company continues to struggle, the new CEO may usher in a new era where the company uses its manufacturing prowess to make chips on behalf of other companies. This strategy could could lead to a lucrative contract with Apple.
As PCs sales have declined, Intel’s output has fallen as well. Its manufacturing plants have not been operating at full capacity, leaving a lot of potential money on the table. Adapting to the new times and making products for companies focused in mobile technology could lead to a comeback for the Santa Clara, California-based company.
However, none of this is possible without the direction of a new CEO. Back in November, long time CEO Paul Otelleni announced that he was stepping down in May. The search has been on to find someone to replace Otelleni. Whether Intel’s Board of Directors appoints an Intel insider or an outside candidate, this executive will have to set the path for the company’s future operations. Increasing its contract manufacturing business and obtaining a deal with Apple could be the spark that the company has needed.
Intel shares were up 20 cents, or +0.91%, during Thursday morning trading. Th stock is down -18.43% over the past twelve months.
The Bottom Line
Shares of Intel (INTC) have a dividend yield of 4.10% based on Thursday’s intraday trading price of $21.95 and the company’s annualized dividend payout of 90 cents per share.
Intel Corporation (INTC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.