“What we have to do is focus on where the markets are going,” Otellini tells the Fast Money traders. “Over the past few years we developed a whole new product line that will introduce lower cost computers while still allowing for very good profit margins for Intel . We used our best technology to build tiny devices but at lower costs. To me that gives us a great buffer no matter which way the economy blows.”
Otellini also reveals an interest in new areas. And Intel could be making their move soon.
"I’d like to see us take our architecture into three other markets that are right near us. The first is the cell phone business. The second is consumer electronics and the third is the world on embedded control. Those are enormous markets for semiconductors today and Intel doesn’t participate in those. And they all share a common theme. They are going to be connected to the Internet.”
Considering there are companies who already do that kind of work, it stands to reason to think that Intel could be looking for an acquisition. But Otellini tells us that's not the case.
”I don’t see us doing a giant acquisition to get there. I think we can do that on our own. But we may do some small bits of technology acquisition to fill portfolio holes that we may have.”
By and large Otellini makes it sound like investors should forget about the bear because Intel is about to take the bull by the horns. “Our business is better than the headlines out there. We’re staying focused, not getting distracted and taking advantage of the fact that we have a lot of cash.”
Not all chipmaker are created equal. Click here to read the Part 1 of our interview with Intel CEO Paul Otellini
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Trader disclosure: On Oct. 21, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C ), (GS), (INTC), (MSFT), (NUE); Macke Owns (UUP), (MCO), (MSFT), (SDS), (BNI); Finerman Owns (GS): Finerman’s Firm Owns (MSFT); Finerman’s Firm Owns (DNA) Call Spreads; Finerman’s Firm Owns (OIH) Puts; Finerman’s Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (COF), (BBT), (USO): Najarian Owns (EMC), (BNI): Najarian Owns (AAPL) And Is Short (AAPL) Calls; Najarian Owns (AXP) Put Spread; Najarian Owns (FCX) And Is Short (FCX) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (RF) And Is Short (RF) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Puts; Najarian Owns (CAL) And Is Short (CAL) Calls; Najarian Owns (MGM) And Is Short (MGM) Calls; Najarian Owns (BNI) And Is Short (BNI) Calls
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