Is Intel Dead Money?

Intel (INTC) has failed to deal with the PC market slowdown till now. The downturn in sales has vividly affected Intel’s stock. But, Intel looks attractively valued now and investors may consider buying it right now.

A lot of opportunities

Intel’s major portion of revenue comes from the PC client group. Desktop PC sales have been moving down throughout the past few years, as many new customers opt to buy notebooks instead of PC. But, the PC sales segment is seeing small growth again, and the gaming market is the reason behind this apparent reincarnation of PC sales.

With the fierce growth of eSports, Twitch and computer gaming, there is very sturdy interest in desktop-grounded gaming rigs.
In the case of the commercial segment, desktop PCs still play a significant role. Moreover, commercial PC desktop volume is projected to surge in the imminent years as soon as businesses begin completing their Windows 10 migration and advancing their prevailing PCs.

Apart from this, Tencent recently detailed that it is using Intel’s processor to power its first gaming console. Tencent is the world’s top video game publisher. The traditional game console firm still proposes decent growth prospect for Intel.

It is well known to everyone that the smartphone market consists of many players, but the console precise x86 processors market is controlled by Advanced Micro Devices. With the help of Tencent, Intel can take over this profitable market from Advanced Micro devices.

Tencent has recently introduced TGP Box, a hybrid console/Windows 10 computer. This TGP Box will allow the user to play streaming games and can also be switched to Windows 10 desktop mode for productivity operations. This Box includes Intel’s sixth generation Skylake processors along with its camera and motion sensor like gadgets.

Moreover, the most fascinating and newest demand for desktop PCs is driven by virtual reality. Virtual Reality devices offered by HTC and Oculus have the greatest demanding compute and graphics necessities. On the other hand, VR headsets need raw horsepower and that can be obtained only from a desktop PC. It is certain that desktop PC sales will never go back to the high level, but it will always hold a significant position in the market.

Conclusion

The PC market is recovering an Intel will likely not lose any more sales. The stock has likely bottomed and Intel is making efforts to grow its sales. Intel is attractively valued and investors can consider adding it to their portfolios.
Published on May 25, 2016
By Akshansh Gandhi

Copyrighted 2016. Content published with author's permission.

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