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Did Intel Just Revolutionize The Processor?

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If you’ve been following me for any amount of time, you know that I’m a big fan of Intel. I won’t get into all the reasons here, but I think that purchasing shares at $18-$19 and over a 3% yield was a great buy, and I’m expecting big things in the next few years. The major concern of bearish investors was their lack of presence in the mobile/non pc market, but with today’s announcement, that may no longer be an issue.

According to a press release put out today, Intel announced a major breakthrough in processor technology – the world’s first 3-D transistor, aptly named Tri-Gate.

If, like me, you first assumed this meant 3-D images through a computer, then you’re wrong. I’m no computer scientist, but the general idea is that chips were limited by the physical space they could occupy. Just like a skyscraper in a city, building up allows for more power, less energy usage, and smaller space requirements.

This new chip, nicknamed “Ivy Bridge” is said to have 37% more power with less energy usage, meaning they would be ideal for small, mobile devices, as well as high performance needs, like automobiles and planes.

Could this be the product that scares the bears away? Will we see this new processor in the hottest new phones, tablets, and everywhere in between? It’s pretty early to say, but if they technology lives up to this hype, I’m feeling even better about owning INTC.

What do you think about Intel’s chance with this new technology? Just in general? Are you buying at $23? I’d like to hear what you all have to say.

I'm a dividend growth investor who is aiming to retire early in 5 years at the age of 45. My goal is to live off the income my dividend portfolio and rental property produce exclusively and leave the corporate rat race. I hope you will join me in this journey!


  1. Too early to say. Intel has good competition too and not to mention Apple is now in the chip business as well (of course they have years to catch up, but nevertheless a competition).

    Intel’s marketing is always cool, but I’d like to see this in action before jumping on board.

  2. I just saw their marketing video and they seem to be pretty confident that its a big advance. I tend to agree, but can they roll it out without headaches like that recall with sandy bridge last year? We’ll see, but at least Moore’s law is still alive and well! 🙂

  3. I think Intel is about to make a huge impact on the mobile/tablet chip market. Google sent Intel their code for their Droid tablet OS so I’m sure they will be coming out with something soon there. Otellini (CEO) said that their Medfield processor will be in smart phones in the next twelves months.

    It’s still early but I trust Intel’s track record. They will deliver.

  4. Very interesting. I was waiting for it to dip back under 19 but it never did and went up quickly. So I am out of position for now.

    I have to say that it takes some time to get a new chip mainstream and most smart phones now use the ARM processor. The cost of getting all the OS to work efficiently isn’t free (but I guess Intel can subsidize it).

    In the short term, 20$ would be my buy point. PC market is still slow and all other devices will take time for Intel to see some money from them.

  5. This is really interesting- I agree- It will be fun to follow Intel and watch where this goes over time! Thanks!