Wall Street watchers are dissecting Intel’s latest acquisition and what it could signal for tech, going forward.

As you may know, Intel

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[INTC  Loading...      ()   ] inked a deal to acquire the wireless communications unit of Germany-based Infineon Technologies

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[IFNNY  Loading...      ()   ] for $1.4 billion in cash.

Wall Street watchers believe that deal is largely at attempt to get into Apple’s latest iPhone - (Infineon’s radio chip is used by the iPhone 4.)

However it may also be an attempt to gain exposure to the iPad – a gadget that seems to have struck an instant chord with gadget geeks and non-geeks a like.

Combine that with the fact that Intel warned revenue could fall short of its own estimates due to weaker-than-expected demand for personal computers and we may have a trend on our hands.

Is the PC becoming passé; to be replaced by the iPad and other tablets?

Instant Insights with the Fast Money traders

Intel’s acquisition acknowledges that something is wrong with their business model, speculates Joe Terranova. They want (less) exposure to the PC consumer. They’re transitioning their model.

I agree that we’re looking at a paradigm change in the space, adds Brian Kelly. People may shift from more expensive PCs to less expensive tablets because they no longer have to store their info on a hard drive. Soon, they’ll be able to do it in the clouds.

* Fast Money executive producer John Melloy wrote about this trend in depth. Click here to go to Intel Gets Into Apple's iPhone, for cheap.

 

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Trader disclosure: On Aug 30, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (AXP), (GS), (IBM), (QCOM), (AAPL), (GOOG), (BRCM), (TER), (MSFT), (C), (MRVL), (BMO), (V), (POT), (OXY), (GLD), (SU), (FCX), (APA), (XBI); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Pete Najarian owns (SCCO); Pete Najarian owns (TCK); Pete Najarian owns (PFE); Pete Najarian owns (CELG); Pete Najarian owns (CNI)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (DRYS)
Virtus Investment Partners own more than 1% of (EXR)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (XLK)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)

For Brian Kelly
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own U.S. Dollars
Accounts managed by Kanundrum Capital own (TBT)
Accounts managed by Kanundrum Capital own (RGR)
Accounts managed by Kanundrum Capital own Japanese Yen
Accounts managed by Kanundrum Capital own Swiss Franc
Accounts managed by Kanundrum Capital is short (XLF)
Accounts managed by Kanundrum Capital is short (IAI)
Accounts managed by Kanundrum Capital is short (MCO)
Accounts managed by Kanundrum Capital is short (RTH)
Accounts managed by Kanundrum Capital is short (RSX)
Accounts managed by Kanundrum Capital is short the U.K. Pound
Accounts managed by Kanundrum Capital is short the Australian Dollar

For Mike Khouw
Cantor Fitzgerald makes a market in (AAPL)

For Michael Block
***No Disclosures***

For Michael Darda
***No Disclosures***

For Richard Volpe
***No Disclosures***

For Ed Mills
***No Disclosures***

CNBC.com with wires.