intel

Texas Instruments Inc. (New York symbol TXN) makes chips for a wide variety of electronic devices, including cellphones, DVD players, digital cameras and handheld calculators. The tech stock’s chips are also used in other products, ranging from weapons-guidance systems to kidney-dialysis machines. In the three months ended December 31, 2010, Texas Instruments’ earnings jumped to $942 million, or $0.78 a share. A year earlier, the company earned $655 million, or $0.52 a share. The sale of a product line, and restoring a research and development federal tax credit contributed $0.14 a share to the latest quarterly earnings. The tech stock’s sales rose 17.3% to $3.5 billion from $3.0 billion. The company saw stronger demand for chips from makers of smartphones and communications gear. That offset lower sales to computer and television makers....

These three chipmakers are leaders in the their niche markets. But they need new products to keep growing. That’s why all three are spending heavily to develop new chips for smartphones and other popular mobile devices. INTEL CORP. $22 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.6 billion; Market cap: $123.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.intel.com) is the world’s leading computer-chip maker. For 2010, the company reported record revenue of $43.6 billion. That’s up 24.2% from $35.1 billion in 2009. Earnings jumped 76.1%, to a record $11.6 billion from $6.6 billion in 2009. During the year, Intel paid $1.5 billion to buy back 70 million of its shares. Because of fewer shares outstanding, earnings per share rose 75.2%, to $2.05 from $1.17....

Intel Corp. (symbol INTC on Nasdaq), is the world’s largest computer chip maker.

For 2010, the company reported record revenue of $43.6 billion. That’s up 24.2% from $35.1 billion in 2009.

Earnings jumped 76.1%, to a record $11.6 billion from $6.6 billion in 2009....

ARM Holdings plc (ADRs), $18.16, symbol ARMH on Nasdaq (ADRs outstanding: 440.4 million; Market cap: $8.0 billion; www.arm.com) designs chips and software for a wide variety of electronic devices, including cellphones, network routers, digital cameras and automobile-control systems. ARM’s chips consume less electricity than competing chips. That helps extend the battery life of mobile devices. That’s why its chips now power roughly 95% of the world’s mobile handsets, and over 25% of all electronic devices. The Cambridge, U.K.-based company does not make its chips. Instead, it earns royalties by licensing its technology to makers of electronic products. Its major customers include Nokia, Sony, Samsung and Nintendo. Apple is also using ARM’s technology in its A4 processors, which power its new iPad tablet computer....

Cisco Systems Inc., $24.56, symbol CSCO on Nasdaq (Shares outstanding: 5.6 billion; Market cap: $137.1 billion; www.cisco.com) is a leading maker of hardware and software that links and manages computer networks. The company’s hardware includes routers, local-area network (LAN) and asynchronous transfer mode (ATM) switches, and dial-up access servers. (Servers are computers that manage shared files or programs on a network.) Cisco’s Internet Operating System (IOS) software ties these products together, delivers network services (which interconnect and move information between networks) and lets programs run on networks. Cisco gets about 45% of its revenue from overseas customers. In its 2010 fiscal year, which ended July 31, 2010, Cisco’s revenue rose 10.9%, to $40.0 billion from $36.1 billion in fiscal 2009. The improving economy has prompted many businesses to update their networking equipment. Excluding one-time items, earnings rose 18.6%, to $9.4 billion from $8.0 billion. The company bought back 325 million shares during fiscal 2010, at a cost of $7.8 billion. Because of fewer shares outstanding, earnings per share rose 19.3%, to $1.61 from $1.35....

SPDR DOW JONES INDUSTRIAL AVERAGE ETF $112.30 (New York Exchange symbol DIA; buy or sell through brokers; www.spdrs.com) holds the 30 stocks that make up the Dow Jones Industrial Average. The fund’s top holdings are IBM, Exxon Mobil, Chevron Corp., 3M, Procter & Gamble, McDonald’s Corp., Johnson & Johnson, Caterpillar Inc., United Technologies and Boeing Co. The fund’s expenses are about 0.18% of its assets. SPDR Dow Jones ETF is a buy....

Exchange-traded funds (ETFs) may have a place in your portfolio. That’s because, unlike many other financial innovations, they don’t load you up with heavy management fees, or tie you down with high redemption charges if you decide to get out of them. Instead, they give you a low-cost, flexible, convenient alternative to mutual funds. ETFs trade on stock exchanges, just like stocks. Prices are quoted in newspaper stock tables and online. You’ll have to pay brokerage commissions to buy and sell ETFs. However, ETFs’ low management fees still give them a cost advantage over most conventional mutual funds. As well, shares are only added or removed when the underlying index changes. As a result of this low turnover, you won’t incur the regular capital-gains bills generated by the yearly distributions most conventional mutual funds pay out to unitholders....

INTEL CORP., $19.32, Nasdaq symbol INTC, reported better-than-expected earnings and record revenue this week. Even so, the stock fell 2%. That’s because investors fear that weak consumer confidence will hurt computer sales during the important Christmas shopping season. In the three months ended September 25, 2010, the chipmaker’s earnings jumped 59.2%, to $3.0 billion from $1.9 billion a year earlier. Earnings per share rose 57.6%, to $0.52 from $0.33, on more shares outstanding. That beat the consensus earnings estimate of $0.50 a share. Revenue rose 18.2%, to $11.1 billion from $9.4 billion. The gains were mainly due to strong computer demand from businesses. That offset weaker demand from consumers. Intel spent $1.7 billion (or 15.1% of its revenue) on research in the latest quarter. That’s up 17.1% from $1.4 billion (or 15.2% of revenue) a year earlier. The company’s high research spending weighs on its earnings, because it must immediately write off these costs. However, this spending is giving Intel a steady stream of new products to fuel its growth....

SYMANTEC CORP. $14.99 (Nasdaq symbol SYMC; SI Rating: Average) (1-408-517-8000; www.symantec.com; Shares outstanding: 789.3 million; Market cap: $11.8 billion; No dividends paid) jumped 10%, to $13.80, on August 20 in response to Intel Corp.’s $7.7-billion purchase of McAfee Inc. (New York symbol MFE). Symantec’s shares have since moved even higher. Like McAfee, Symantec is a leading maker of computer-security software. Symantec could also become a takeover target, as its shares are well off their high. The possibility of a takeover adds to Symantec’s appeal, but it’s not enough reason to buy the stock right now....

3M COMPANY, $83.84, New York symbol MMM, announced two acquisitions this week. Both purchases will strengthen 3M’s position in the fast-growing security-products industry. The company is buying California-based based Cogent Inc. (Nasdaq symbol COGT). Cogent specializes in biometric technologies, such as devices that scan fingerprints before allowing access to secure facilities or computer data. 3M will pay $943 million for Cogent. However, Cogent holds cash of $513 million, so the price is really $430 million. This is a small purchase for 3M, which earned $1.1 billion, or $1.54 a share, in the three months ended June 30, 2010. The company expects to close this deal by the end of 2010. 3M has also agreed to buy privately held Attenti Holdings S.A. for $230 million. Israel-based Attenti makes devices that keep track of people, such as hospital patients or people awaiting trial or on probation. This purchase should close in the fourth quarter of 2010....