On Tuesday, investors were baffled by the latest speculation suggesting Intel might launch an online pay TV service.
According to published reports, Intel plans to sell a Web-connected set-top box capable of streaming TV and video-on-demand programming.
Immediately the Street was trying to get a handle on what Intel is thinking. If speculation is true, the initiative seems rather ill-conceived, doesn’t it?.
Not according to Abhi Talwalkar, President & CEO of LSI Corp. He tells us it could be very shrewd. “I worked for Intel for a number of years,” he says. And according to Talwalkar Intel knows it needs to diversify to drive growth.
However, if Intel enters other fields related to their core business, they would end up in competition with their customers.
But that's not the case with an online pay TV service.
“(And) if anyone can pull it off it’s probably Intel,” says Talwalkar.
OptonMonster Jon Najarian also sees the potential. He thinks Microsoft does too. “Xbox is now how people get Hulu and Netflix,” he says. “There are 57 million consoles out there – compare that to Comcast , which is about 22 million subscribers,” he says.
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Trader disclosure: On March 13, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Weiss is short JCP; Weiss is long VZ; Weiss is long QCOM; Weiss is long JPM; Weiss is long EUO; Weiss is long TBF; Weiss is long HAIN; Weiss is long SNDK; Weiss is long BRCM; Weiss is long NFLX (PUTS); Weiss is long CSC; Weiss is long BKU; Weiss is short MT; Weiss is short ANR; Weiss is short FCX; Weiss is short FXA; Najarian is long AAPL call spreads; Najarian is long GS call spreads; Najarian is long JOYG call spreads; Najarian is long RIG call spreads; Najarian is long LULU call spreads; Najarian is long RL call spreads; Najarian is long MSFT call spreads; Najarian is long UBS call spreads; Najarian is long WDC call spreads; Brown is long AAPL; Brown is long QQQ; Brown is long JPM; Brown is long LULU;
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