Intel Corporate Finance

1.0 Introduction

Corporate Finance is part of financial management which deal with methods and applications that assists in undertaking financial decisions in the business world. The goal is to maximize return on investing in projects or stocks which have a positive Net Present Value. The purpose of this assignment is to analyzing the best stock to be invested among Intel Corporation (INTC) and Advanced Micro Devices, Inc. (AMD). It also describes the methods used such as variances and standard deviation in order to provide better understanding on the investment risk level of these stocks so that investors can decide which stock they want to invest.

2.0 Company Background

2.1 Intel Corporation (INTC)

Intel was founded in 1968 by Gordon E. Moore and Robert Noyce when they left Fairchild Semiconductor. Intel started with building semiconductor memory products in year 1968, followed by introduced the world's first microprocessor in 1971 and one of the first microcomputers in 1972. Intel products include motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. Intel holds about 80% of the market share for microprocessors that go into desktop and notebook computers and also computer servers. PC giants Dell and Hewlett-Packard are Intel's largest customers, these giants use Intel processors most. Intel is the world leader in semiconductors industry, the corporation continues to be innovative, develops technologies, products and takes initiative to continually advance how people work and live. This helps Intel to growth profitability worldwide. In 2009, Intel held number one position among semiconductor manufacturers in terms of revenue.

Intel announced revenue up 34% to a record USD10.8 billion in the second