Here's Why Intel Is 'The Most Important Company In The World'

Even though Intel Corporation INTC is not counted amongst the ‘cool’ tech companies now, for value investors it remains the best pick in the tech space.

Jack Rivkin, chief investment officer at Altegris Advisors, was on Bloomberg Tuesday to discuss why he considers Intel as the most important company in the tech space.

“Well the valuations are crazy in what I call ‘new tech’, if you look at old tech, old tech I define as sort of Intel, Microsoft, Cisco, kind of that segment. They are not as expensive,” Rivkin said.

What Is So Interesting About Intel?

“Intel is the most important company in the world in my view,” Rivkin replied. “Intel is the keeper of the Moore’s Law, Intel is the one that is driving these processing speeds down, every year and a half they are cutting them in half. Intel is doing that, Intel has got the capital to do it, they have got the technology to do it and they are doing it and without Intel, I am not sure where any of these hi-tech companies would be.”

Aren’t Other Chip Manufacturers Doing The Same Things As Intel?

“They are doing the last generation of what Intel does, they are not doing the new generation of what Intel does and Intel, by the way, is the largest venture capital company in the world as well. They have put $10.5 billion to work in venture; they have got venture setups all around the rest of the world. They are in touch with what’s going on out there and they are driving from 14 nanometers to 9 nanometers, ARM [ARM Holding Plc] can’t do that, these phablet operations can’t do that,” Rivkin added.