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Intel launches New Chips…delay your purchase of Computers for a month and Check out HCL Info at Rs 160 and Zenith Computers at Rs 27…Investing Theme being Computer Scrips

Intel has advertised today the launch of new Chips….i3,i5 and i7

Currently Computers and Laptops and Netbooks are powered by Intel Core 2 Duo or an Atom processor

By month end we can expect all the major Computer Brands to launch Computers with the New Chips…so delay your purchase till then….you’ll get the new chips or some fabulous deals on the Computers with the earlier Chips

The New series of Chips has the following advantages

  • nearly doubles the processing power
  • shrinks the size of Components inside the Chip by nearly 30% thereby reducing the chip size,power consumption and heat emission
  • Transistors or Switches are 32 nanometer in size compared to the current 45 nanometer….a nanometer is one billionth of a meter
  • Each New Chip will hold 440 million switches against the current 290 million 
  • The Memory and Graphic Controllers,which were earlier housed in chips adjacent to the main processor,will now be withing the Main Chip itself
  • The shrinkage in size of Components allows the Laptop to be slimmer by another Inch
  • The operating speeds will be maintained within 1 to 3.7 gigahertz
  • There will be no immediate price impact as the New Series are priced more or less at same levels as the Core 2 Duo Processor,especially for desktops…For the New Chips For Laptops the price is a little higher…A 32 nanometer i3 Chip laptop will be priced at Rs 35000 
  • The Laptop Chip’s Clock Speed will be 2.1 GHz….This speed is turbo boosted by 10% to 110% in the i5 Series chips which will cost Rs 2300 more than the i3 series…Both i3 and i5 laptop chips will consume 35 Watts while the high end i7 will consume 18 to 35 watts 

These New Chips are expected to drive PC sales in India in 2010 and the Industry should record a 30% growth after a flat 2009 in which 8 million units were sold,of which 30% were laptops….20-x should see sales crossing 10 million units of which laptops would be 4 million +

So this brings up an Investing Theme…Listed Computer Desktop and Laptop Scrips 

So check out Companies like HCL Infosys at Rs 160 (FV Rs 2)…It may just come back in strong favour and flavour and clock a higher EPS in FY 11….current market cap is Rs 2750 crs and a 52 week High /Low is Rs 189 /Rs 66….EPS is just under Rs 14 and the P/E is under 12 with the P/BV above 2…..Intel’s New Chips may just Power HCL Info past Rs 200 

If you’re looking for a small priced Computer scrip…have a look at the negligible volume Saraf’s Zenith Computer at Rs 27…but I’m no fan of this Company or it’s Promoters…but I would not be surprised if this scales past Rs 40 this year…52 Week High/Low is Rs 34/Rs 12

I’m not recommending these…just playing out an Investment Theme that may have some potential and asking you to check out Listed Computer Companies….Act only if you see merit in this argument and the Financials and Fundamentals of the scrips appeals to you 

All the Best

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