14 DAY TRIAL // When the FTC filed its antitrust charges against Intel Corp. about two weeks ago, some parties believed that Intel's x86 license might be in danger. NVIDIA was quite pleased with the events and rumors that ARM chips might finally see a wider adoption started to sprout, even though the FTC quickly responded by saying that “breaking up Intel” was not its main goal. The overall sentiment was a mixture of hopefulness and uncertainty regarding the possible restrictions that might be placed upon Intel's business practices, and how this would affect, or help, hardware makers.
The feeling persisted over the past two weeks, but it seems that, according to analyst Doug Freedman of Broadpoint AmTech, the implications of the anti-Intel case may be “overblown.” Freedman says that Intel's defense is seriously being underestimated and, even if the FTC were to win, the Santa Clara-based giant's x86 license would likely be in no great danger.
This, Freedman states, is because courts are unlikely to go along with the Commission's demands and force Intel to license the architecture. The impression left is that the FTC will probably have to make due with some other type of settlement.
"We believe attempts were made to resolve the issue non-publicly," Freedman wrote, "but Intel balked at the FTC's requirements to license its buses, as well as x86 processors, to [Nvidia]."
Broadpoint AmTech also believes that, even if Intel is forced to license the x86, NVIDIA would still reap no benefits. OEMs are already moving towards platforms that integrate graphics in the low and mid-end markets and use discrete solutions in the high-end segment. This means that the resurrected rumor, which implied that NVIDIA might start making x86 chips, is still unfounded.
The firm continues to see Intel stocks, which traded at $20.31 on Monday, as the “best value” among semiconductor stocks. The current rating is set on “buy” and the price target of the shares is $29.