Market Overview

No One Compares To Intel In Global Semiconductor Market Share

Share:
No One Compares To Intel In Global Semiconductor Market Share
Related INTC
The 5 Things I Look For In A Potential Trade
Apple, Diamondback, Intel, XLU: 'Fast Money' Picks For December 7
Podcast: Qualcomm Tech Summit, Intel Analyst Event, Nvidia Robotics (Seeking Alpha)
Related QCOM
Apple Announces $1B Austin Campus, Investments In Cities Nationwide
What China's iPhone Ruling Means For Qualcomm And Apple
Podcast: Qualcomm Tech Summit, Intel Analyst Event, Nvidia Robotics (Seeking Alpha)

Semiconductor stocks have made a lot of headlines in recent months.

On Monday, Broadcom Ltd (NASDAQ: AVGO) made a massive $130 billion bid for QUALCOMM, Inc. (NASDAQ: QCOM).

NVIDIA Corporation (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD) have been two of the hottest stocks in the market in the past couple of years.

The semiconductor industry has exploded in size over the past two decades. Global semiconductor sales reached $340 billion in 2016, up from just $204 billion back in 2000. However, despite the massive growth of a number of semiconductor giants, there's still one unrivaled behemoth with a commanding global semiconductor market share lead: Intel Corporation (NASDAQ: INTC).

Even with a combined market cap of more than $200 billion, a combined Qualcomm-Broadcom would still only be the third largest semiconductor company in the world, according to Statista.

The chart below shows the top global semiconductor companies by market share, and Intel’s 15.9 percent share is more than triple every other company except for Samsung’s 11.8 percent share. Qualcomm and Broadcom would combine for 8.4 percent market share.

That relatively modest market share is good news for Qualcomm investors hoping the deal makes it past antitrust regulators. Even after the $70 per-share bid price was announced, Qualcomm’s shares are trading at around $63 per share. The roughly 10 percent discount to the buyout price suggests there's meaningful skepticism that the deal will go through in a timely manner.

Qualcomm management has indicated it plans to oppose the buyout and believes the bid price doesn’t reflect the full value of the company.

Related Links:

Analysis: AMD's Intel Deal Lends Almost 100% Upside To The Stock

A Pause In Intel's Big Rally

Posted-In: StatistaEducation Tech General Best of Benzinga

 

Related Articles (AMD + AVGO)

View Comments and Join the Discussion!

Fintech Lender LendUp Hires Tesla Head Of Financial Services As CFO

The Spark Energy Bull Case Is Extinguished By A Lack Of Catalysts, Analyst Says