Intel(US:INTC) The Motley Foolยท2024-12-19 14:47Core Insights - Companies that fail to adapt to market changes risk falling behind, as exemplified by Blockbuster's missed opportunity with Netflix [1] - Intel is facing challenges due to missed opportunities in smartphones and artificial intelligence, leading to a significant decline in its stock value [2] - Arm Holdings has capitalized on Intel's missteps, dominating the smartphone chip market with over 99% share and achieving record revenues [3][4] Arm Holdings - Arm's revenue reached a record $844 million in Q2 of fiscal 2025, reflecting a 5% year-over-year growth, with expectations of 13% growth next quarter and 22% for the fiscal year [4] - The company benefits from a business model that generates lasting revenue through licensing and royalties, with significant market shares in automotive (41%), cloud (15%), IoT (54%), and mobile (99%) [5][6] - Arm's stock price has increased by 93% in 2024, resulting in a market cap of $153 billion, trading at 39 times its midpoint sales guidance for the fiscal year [7] Marvell Technology - Marvell Technology produces essential infrastructure for data centers, which are experiencing rapid growth, supported by significant investments from companies like Amazon and Microsoft [8][9] - The company's revenue reached $1.5 billion in Q3 of fiscal 2025, with a 98% year-over-year increase in data center sales, which accounted for $1.1 billion of total sales [10] - Marvell is not yet profitable but reported a non-GAAP operating margin of 30% last quarter, indicating strong potential for future growth [11][12] Market Outlook - Analysts are optimistic about Marvell and Arm Holdings, with 33 of 36 analysts rating Marvell as a buy or strong buy, and expectations for revenue acceleration leading to potential increases in price targets [12][13] - Intel's turnaround is anticipated but may take time, while AI-focused companies like Marvell and Arm are currently positioned for greater momentum and upside [13]