Friday, May 2, 2014

Intel Eying Growth Amid PC Revival And Growing New Segments

This article was originally published by GuruFocus on April 25, 2014. 

By Sarfaraz A. Khan. Research Assistant: Gohar  Yousuf

One of the world’s leading chip makers Intel (INTC) has recently released its quarterly results that were better than analysts’ estimates. The company has shown improvements in its PC business, from where Intel drives more than half of its revenues. Moreover, recent data from the leading research firms has shown that the PC market is bottoming-out, with less than anticipated fall in PC shipments.

Moreover, there is increasing optimism related to Intel’s Internet of Things and Mobile segments. Although the company’s revenues from mobile devices dropped by more than 60% in the quarter, it is in the midst of an aggressive expansion plan in which it is rolling out new mobile chips and reporting contra-revenues. The company is confident about meeting its target to ship 40 million tablet chips during 2014.

The tech giant’s shares have risen by 13.5% in the last 12 months, currently around $26.50. Analyst at Citigroup and Deutsche Bank are optimistic about the company’s future. The two have a buy rating on the stock with a price target of $30.

Quarterly Results

Earlier this month, Intel reported its first quarter results in which its revenues climbed 1.5% from last year to .. read full article at GuruFocus