Intel CEO Brian Krzanich said the company wants to prove to people that it is an innovation engine which will drive growth. Krzanich, during an interview with Mad Money host Jim Cramer, said Intel needs to move faster.
Innovation is the key
During the interview, Krzanich cited various examples of how he fueled the company’s innovation engine by creating innovation around existing PCs and their connectivity functions. Intel’s CEO talked of a drone designed by Ascending Technologies using an Intel RealSense camera that enables the machine to see and think. The drone was flown through a forest at 12 mph without any human assistance, and the machine was able to hover around the trees for the simple reason that it was able to see the trees in the forest.
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“What we have done now is taken the intellectual property we built on the PC and we are pushing that across a variety of devices,” he added.
Drones and other similar inventions also take innovation forward by taking a picture and then automatically creating a video game character that mimics the whole body. Krzanich stated that now gone are the days, when a product takes more than 4-5 years to come into the market, adding that Intel discussed some products last week that are supposed to come out by the end of this year.
Intel CEO on Altera
Directing attention to Altera, which turned down Intel’s offer of $54 per share recently, Cramer asked why Intel is not able to take it on their own based on the revolution presented.
Krzanich said, “I can’t comment on rumors that are in the press. But in general the way we think about it is, you want to have a nice supply line of your internal technology that you’re developing.” Intel’s CEO said that there are occasions when the company opts for acquisitions to get intellectual property or market share, “And we are not afraid to go do that at times.”
Cramer believes the stock is undervalued as of now and expects some catalysts for the chip maker in the time ahead. On Monday, Intel shares closed up 1.31% at $32.50, and year to date, the stock is down by almost 12%.