Buying Stock: Intel Corporation (NASDAQ:INTC) preferable?

Buying Stock: Intel Corporation (NASDAQ:INTC) preferable?

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As per reports, Intel’s share prices have decreased once again, more than 13% year to date. Why is it so? There have been certain reasons provided for this failure in 2015. Some of them really warrant investors’ queries. No wonder about the fact that Intel still depends highly upon the PC market for revenue driving (the division accounted for around 62% of the total sales last year). Furthermore, PC growth is even at best.

But, before investors dismiss Intel as worthy of inclusion on a list of top stocks to buy, there are a few other factors worthy of consideration.

CEO Brian Krzanich aims to come up with strategies for Intel Corporation’s (NASDAQ:INTC) future to gather steam, and intends to dominate going forward, poised for outstanding growth. For investors with a long-term perspective, Intel offers a fascinating opportunity.

Intel adjusted its Q1 forecast downward a couple of weeks ago. And it wasn’t just that Intel lowered expectations, it was the magnitude of the revision. Rather than the US$13.7 billion of revenue, give or take, that Intel had previously expected in 2015’s first Q, it’s now forecasting about US$12.8 billion.

Microsoft’s stock price is also down year to date, to the tune of 12%, for many of the same reasons Intel shareholders have been feeling the strain. Also, similar to Microsoft, analysts and industry pundits are becoming antsy waiting for Krzanich’s planned strategic changes at Intel to take hold.

As for the good news, many analysts and industry pundits have focused on the paltry 3% improvement in Intel’s PC group revenue in the 4Q of year 2014, compared to the year prior, along with its weak mobile performance. The US$4.1 billion in Q4 data center revenue was a whopping 25% jump, compared to 2013. In 2013’s 4Q, data center sales made up 25% of Intel’s total revenue. This past quarter, Intel’s data center unit totaled 32% of sales. What makes this unit’s stellar performance so critical is that it’s due to Intel’s emphasis on cloud solutions.

Intel is laying the foundation for success by focusing highly upon next year’s technologies, not last year’s PC market, and that bodes well for the future.

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I am a lecturer at the University of Economics in Bratislava, department of Banking and International Finance. I have a Ph.D. academic degree, my dissertation was focused on major markets. Commodities and stock markets are also the main focus of my research and publication activities. I have approximately 10 years of investing experiences. My investments mostly focus on small- to mid-cap companies of energy sector, financial and technology.

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