Trade Alert: Adding this surprising play on The Voice Revolution

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Here’s today’s report, including a new position for the portfolio…

Remember when I bought Sony partly because I saw it as a “Surprising play on the Virtual Reality Revolution?” Well, I’ve got a similarly surprising play on The Voice Revolution. Here ya go…

Intel was one of the four horseman of the dotcom boom. Intel inside was a calling card of every PC sold. Life was good

As the screen migrated from your desk to the palm of your hand INTC was ill prepared for the change.

All this is obvious and well documented. Yet INTC refuses to let the rut of the last decade and a half continue. The former dominant PC player has gotten ahead of the curve in a soon to boom sector IoT. With design wins in Echo, Echo show its position with the leader in Thevoicerevolution is exciting for share holders. Potential design wins in a cellular Apple watch make INTC a potential BIG winner as IoT explodes. The company has such special emphasis it has broken out IoT revenues in order to show the street its growth.

IoT is just one piece of a big pie that INTC is fighting for a foothold in. INTC purchased MBLY. Perhaps realizing ther had no edge in autonomous vehicles the paid big for MBLY technology and a place in the market.

It is very important for INTC to continue DOMINATING the Server platform. The introduction of their self proclaimed “biggest platform advancement in a decade” the Xeon processor MUST continue to hold off any share loss from AMD.

AMD is not the only threat for INTC. QCOM has begun collaboration with MSFT in an effort to speed up INTCs PC market declines. While the overall market in the area is slowing it is still a big revenue driver for INTC. The PC market has also opened up to ARM which also posses a threat in the declining area

Despite these threats to already declining businesses Intel has made some great moves in IoT and Autonomous vehicles. With the explosion in those areas coming, along with mainting their place in their current markets INTC should return to growth.

In fact, Intel is so well-positioned to benefit from The Voice Revolution (and IoT and AV Revolutions) that in my newly published 50 Stocks for the Voice Revolution, I rated it as an 8/10 on my Revolution Investing Rating system. Here’s the write up from the book:

Intel has long been identified as a “value” stock due to its embedment in the PC market and major missteps by not capitalizing in mobile (and therefore minimal revenue growth). Intel has not been sitting idly by crying over the spilt milk. With strategic purchases of Altera (high-end chips, datacenters) and Mobileye (autonomous vehicles) and Movidius (computer vision processors), Intel is making their move for the next 10 years. Couple that with strong positioning in IoT, Intel should be able to shed the ‘value” stock label and return to the growth.

Intel currently derives approximately 4% of its revenue from IoT with approximately 50B IoT devices expected in the next 5-7 years. Intel is positioned at the forefront of the IoT revolution. Considering their already strong relationship powering Amazon’s devices that 4% should grow exponentially.

With the purchase of Mobileye, Intel is also attempting to position itself at the forefront of the autonomous vehicles revolution which is in the very early stages. While the purchase price of $15B may be viewed as rich for the $408M in revenues, for autonomous vehicles alone the growth in the next 10 years projects as high as $70B.