Investors at Intel Corporation (NASDAQ:INTC) have much more to consider this year having seen the stock experience one of the best runs in 2014 at the back of an improved refresh cycle on the PC market. CNBC’s, Josh Lipton, notes that the stock surged by 40% in 2014 making it a top performer on the Dow. It awaits to be seen if the company will maintain the impressive run at the back of the ongoing growth on the PC and server business.
Intel Corporation (NASDAQ:INTC) is poised to benefit a great deal from a relatively stable year in 2015 at the back of a stronger labor market. Companies are expected to hire more workers translating to increased demand for PCs. Despite the positive sentiments about Intel’s stock, the Street continues to raise concerns about the company’s valuation.
“The PC market was basically flat that is not great but certainly better than a lot of people had expected. That is good news for Intel, which dominates the PC chip business; that business does account for about 60% of its sales,” said Mr. Lipton.
Intel Corporation (NASDAQ:INTC) turned out to be a chief data server and PC market solutions provider in 2014 a business that it is expected to affirm a firm grip on, going forward. The giant chip company also looks to have thrown in the towel on the mobile chip business as attention now shifts to the PC and Server business.
Intel Corporation (NASDAQ:INTC)’s strong data center growth is also expected to continue growing in 2015 as more companies continue to seek services on the cloud.
“The other big part of Intel Corporation (NASDAQ:INTC) business remember is providing chips for servers that account for 20% of its sales. That business could generate another $7.5 billion in revenue over the next four years,” said Mr. Lipton.
The mobile business is expected to provide the biggest headwind for Intel Corporation (NASDAQ:INTC) as the company expects the unit to continue generating losses. Senior technical analyst Carter Brown remains bullish on the stock maintaining that the technicals remain strong and that the stock could clock highs of $42 a share.
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