The Silicon Valley region of California’s Bay Area got its name in the 1960s as a result of the many semiconductor companies that were established in the area, making the silicon-based chips that were powering the computer revolution. At the forefront of this movement was Intel (INTC), a company founded by two of luminaries of information technology – Robert Noyce, the inventor of the integrated circuit, and Gordon Moore, the developer of “Moore’s law” of technological development – that emerged as an early leader in both SRAM and DRAM memory chips, as well as the x86 series of microprocessors that drove the vast majority of personal computers starting in the 1980s.

Today Intel continues to manufacture processors for mobile and desktop use, as well as computer hardware infrastructure like motherboards, network interface controllers, memory chips, graphics controllers and more. Intel’s primary competitor to this day is AMD, the number-two U.S. maker of integrated circuits.

In 2018, Intel reported more than $70 billion in revenue and employed more than 110,000 people in facilities all over the world.

Rationale

The most direct way to gain exposure to INTC is to buy its listed shares. But there are a number of good reasons for investors to reconsider that approach. As of 2018, Intel remains a world leader in semiconductor development and manufacturing. But it is starting to grip on the world market, recently losing its title of world’s largest semiconductor to South Korea’s Samsung Electronics. What’s more, as mobile computer begins to fully displace traditional desktop and laptop computers, there is less of a need for Intel’s specialized hardware. That pivot is only accelerating and could start to drag down Intel’s long-term growth.

However, rather than buying INTC shares themselves, investors interested in gaining exposure to the information technology and semiconductor sectors might consider buying funds that provide exposure to Intel and its competitors. After all, the return drivers that will benefit INTC might also benefit other similar companies in information technology, computing, and semiconductor manufacturing. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like INTC through these types of funds.

Investing in INTC

A search on Magnifi suggests that investors can gain access to INTC via a number of different funds and ETFs, including those shown below.

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