Intel: Three charts that tell the story of the Otellini era

News that Intel boss Paul Otellini will step down in May after eight years at the helm of the chip giant is being greeted neutrally by investors today. Otellini officially ascended to the corner office on May 18, 2005. Here’s a look at three key charts that tell key parts of the story of his tenure.

First, Intel’s market capitalization shrank by roughly 37% during Otellini’s term.

Intel's market capitalization shrunk by roughly 37% during Mr. Otellini's term, from more than $160 billion to around $100 billion Monday.
Intel’s market cap: down 37%.

Of course, Intel has been dealing with the same industry trends as other chip makers, including the rise of tablet computing. Here’s a look at how its stock price has done, in comparison to the Philadelphia Stock Exchange Semiconductor Index, a broad barometer of chip-maker stocks. During the Otellini era, Intel shares are down 22%. The broader index is down 15%.

Of course, Intel is dealing with similar industry trends as other chip makers, including the rise of table computing. Here's a look at how its stock price has done, in comparison to the Philadelphia Stock Exchange Semiconductor Index, a broad barometer of chip maker stocks.

Intel has hung in there. During the Otellini era, Intel shares are down 22%. The broader index is down 15%.
Intel down 22%, semiconductor stocks in general down 15%.

But what really matters isn’t Intel’s performance against similar chipmakers but the comparison with the explosive share price of ARM Holdings, the designer of the most popular kind of chips for smartphones. Intel, by contrast, mainly makes chips for personal computers. Intel’s inability to react to the rise of smartphones and tablets could end up being Otellini’s main legacy.

This chart is the whole story of Intel over the last few years. It shows the explosive share price of Arm Holdings, the designer of the most popular kind of chips for smartphones, versus the stock price of Intel and the Philadelphia Semiconductor Index.  Intel's inability to react to the rise of smartphones and tablets could emerge as the most important implication of Otellini's stint in Intel's corner office.
Intel didn’t keep up with the rise of smartphones and tablets.
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