Tomahawk, WI 11/25/2013 (BasicsMedia) – There have been recent events concerning Intel Corporation (NASDAQ:INTC) on which the company has been routinely judged. There are a lot of people who are reading too much into the chipmaker’s declining fortunes in PC market where it had become a household. Then the recent investor meeting also seems to have failed to strike positive note with investors. Remarks by Qualcomm CEO that INTC was no real threat to their tablet chip business also continued to send shivers down the spine of many investors and potential ones on this ticker.

It’s easy to get carried away by what competitors say about the market. It is also easy to be worried about a company’s narrow forecast going forward. However, if the company in question is Intel Corporation (NASDAQ:INTC), such worried should belong to the dustbin.

It is a fact that PC market is declining fast, but it also a fact that Intel Corporation (NASDAQ:INTC) still has strong grip in the segment with its server business. No only that, the PC segment still has a lot of juice to be squeezed and INTC is doing just that. At the same time, the $118.90 billion capped chipmaker is also making gradual and steady switch to mobile chips. We have to admit that in this segment, INTC is a late entrant. However, there is strength in this late entry and this is why its competitors should be very afraid.

First, looking at the company’s high-end technology, it is not a competitor to just wish away by word of mouth as Qualcomm would want the market to believe.

Intel Corporation (NASDAQ:INTC)’s calculation into mobile chip-making

Today the juice in chip-making business is found in smartphones and tablets. Most of Intel Corporation (NASDAQ:INTC)’s competitors are already doing well in this business. However, given that the market understands everything about the high-performance Intel chips, penetrating this market won’t be a tall order for INTC whose technology is the industry leader. The market continues to demand high-performance and energy efficient chips which put a lot of power into the handheld devices without disappointing the size and power consumption especially in this age of intense green environment advocacy. We see that INTC is not just entering the mobile competition just like any other competitor, but instead, the chip making is curving a niche of high-end chips which only its factories and technology can produce as we speak.

INTC big contract chip manufacturing

Intel Corporation (NASDAQ:INTC) has the most advanced chip-making technology. Besides making its own chips for the market, the company is trying to be the global chips manufacturer, producing even for competitors. Opening up its factories to big players to access its cutting-edge chip-making technology is on untapped revenue source that has a lot of potential in raking billions of revenue for the company. Currently a Taiwan semiconductor company is the one that has been raking in billions of dollars manufacturing chips for the world. Contract manufacturing will also play into the company’s strategy of driving up revenue and earnings while keeping operating expenses down.

INTC good for uptake now when price is down

There is every indication that Intel Corporation (NASDAQ:INTC) is undervalued at the present price of about $23.87. The ticker is a $30 stock and this means that as long as it stays below $27, INTC stock is ripe for uptake. It is important noting that the stock is trading 13x earnings, which validates its undervaluation.

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