News Snapshot:
Nvidia (NVDA) over AMD. Moving production to Taiwan Semiconductor would likely hurt Intel’s margins, however. Danely estimated that it would result in a 10-percentage-point drop in the company’s gross margin, and a 25-percentage-point drop in its per-share earnings. For Taiwan Semiconductor, Intel shifting some of its production would generate a lot more revenue. Danely wrote that for every $2 billion in processor business that Intel shifts to Taiwan Semiconductor, the latter company will gain $560 million in sales. Danely wrote that it’s likely that Intel will outsource its lower-end Atom processors. Currently Danely estimates Atom chips are roughly 15% of...
