Tomahawk, WI 01/15/2014 (BasicsMedia) –  Intel Corporation (NASDAQ:INTC) will release its Q4.13 after the market closes on Thursday. It is a well known fact the company is till hampered by the slum in PC market. It is important to finds out how the forthcoming results could affect the stock and what measures investors can take to avoid losses.

The company is the leading supplier of chips processors whereby it supplies about 4 out of 5 of every PC processor. This dominant position in PC market was once a blessing for Intel Corporation (NASDAQ:INTC), but now it is bringing trouble as it affects the company’s revenue. The impact in PC market is fueled by the shift to smartphones and tablets. Instead, Intel is trying to offset this negative impact due to decline in PC sales by going into chips for tablets, phones and servers.

PC market

It is emerging that sales of PC declined even further in the busy season of December, further hurting sales of Intel Corporation (NASDAQ:INTC). Due to the huge drop in PC sales in 2013, it becomes the worst season of the market in many years.

Nonetheless, that PC sales dropped by about 7 percent in the fourth quarter reveals something interesting. First and foremost, analysts expected sales to drop to about 10 percent; it thus goes that PC market was better than expected in the fourth quarter.

According to data released by Gartner which tracks PC sales, the market weakened by 7 percent during Q4. On the other hand, International Data Corp which also looks into global PC sales noted that sales dropped 6 percent in the fourth quarter.

Looking at these data, analysts agree that Intel Corporation (NASDAQ:INTC) still has a chance squeezing some benefits from the market. As such, the company’s near-term earnings potential from PC is still in good standing.

Looking at Intel

Given its dominant position in the PC market, Intel Corporation (NASDAQ:INTC)’s performance affects other chipmakers. That the stock is a member of the Dow Jones suggests that many investors will be keeping a close eye on what the company reports.

Intel Corporation (NASDAQ:INTC) is expected to report profit of $0.52 per share, ahead of the $0.48 which it reported a year ago. As for revenue, the company’s own projection is in the range of $13.2 and $14.2 billion for the fourth quarter. Analysts are however begging hopes on the company reporting revenue above $13.70 billion. During the same quarter in 2012 the company reported revenue of $13.5 billion.

What to expect

If Intel Corporation (NASDAQ:INTC) meets or exceeds these earning estimates as it is widely expected to, the stock going to rally upward. And this rally will most likely be seen in other chip companies given that Intel is the industry trend setter.

Currently Intel is trading around $26.51 per share after coming from the lows of $25.90 over the past 12 months. The stocks peak over the past one year is $26.55.

Arizona Fab

Intel Corporation (NASDAQ:INTC) has just postponed the opening of its new factory in Arizona that is expect to add to the company’s production of 14nm chips. Going to next-gen chips is expected to give the company fast-penetration of the tablet and smartphone market where it is trailing rivals.

Looking at the growth prospects in Intel Corporation (NASDAQ:INTC), investors are wise to hold or stake positions in this stock now.

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