Intel Corporation (INTC) To Make Chips for Lenovo, Foxconn, ASUSTEK Mobile Devices


The semiconductor industry stocks depicted volatile trends in 2014 and Intel Corporation (NASDAQ:INTC) was no exception. The company is one of the largest semiconductor companies which makes microprocessors. Microprocessor industry accounts for more than 20% of the overall semiconductor business around the world and Intel Corporation (NASDAQ:INTC) gets a bigger part of it. In an article on Seeking Alpha, it was reported that Intel Corporation (NASDAQ:INTC) experienced a pretty sound market growth this year. The stock went up by 40% year over year from around $23 to $37 per share price.

Intel, is INTC a good stock to buy, Tsinghua Unigroup, China

The source said that Intel Corporation (NASDAQ:INTC) has two main areas which can grow in the coming year: Data Center and Server chip business. The Enterprise is massively migrating towards Cloud. The on-premise systems are on the decline. Intel Corporation (NASDAQ:INTC) must design and launch chips which can inculcate the wide industry needs. The hardware business of Intel is completely fixated on Cloud based server business. On the other hand, data center business has shown a steady growth of 16% this year and an estimated growth of 15% is coming next year.

Intel Corporation (NASDAQ:INTC) is desperately trying to make a mark in the mobile business. The tablet ad mobile hardware chips are powered by AMD and Qualcomm whereas Intel is nowhere to be found. The source said that Intel Corporation (NASDAQ:INTC) has recently struck some major deals with ASUSTEK, Lenovo and Foxconn after which, the mobile devices made by these companies will be powered by Intel chips.

The source thinks that Intel Corporation (NASDAQ:INTC) will keep its upward graph. It is not currently a strong BUY but it can certainly be a good long term investment for the investors.

As of June 30, 2014, Ken Fisher’s Fisher Asset Management owns over 18 million shares in Intel Corporation (NASDAQ:INTC).

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