The world of microchip processor technology is one which is advancing at breakneck speed, requiring innovation and growth from investors who appear to be much less forgiving than in the past for companies operating at scale. Such is the case for tech giant Intel Corporation (NASDAQ:INTC), with shares of the semiconductor maker down substantially since reporting the company will not be releasing key new chip technology until next year.
The concern among many analysts and investors is that such a move, or any delay for that matter, allows competition to step in with higher-quality products at a faster rate of development to fill the void and take away market share in a very competitive and lucrative business dominated by just a few players. The company’s 10-nanometer chip is expected to be installed in computers being sold in mid-2019, a large enough window, many say, for competitors to jump through at this current juncture.
Intel has, for decades, remained the leader in innovation in bringing higher-quality chips to market at increasingly smaller sizes, with state of the art production processes and some of the best minds in the business contributing to the firm’s success. This hiccup has resulted in numerous downgrades and a selloff which seems unlikely to abate for the time being.
As with many other growth stocks on the market, I would suggest investors look elsewhere at this point in time, as companies with the biggest market capitalizations are those which will continue to be prone to large price swings in the near future.
Invest wisely, my friends.
