Intel Is Mispriced And Positioned For IoT Growth Posted on : Apr 25 - 2015

Intel (NASDAQ:INTC) is currently mispriced as analysts still tie the company's value primarily to PC sales and have failed to account for Intel's positioning in the Internet of Things ((IoT)) market. Looking at the larger macro environment, it's clear that IoT represents a far larger addressable market than the PC industry. This will likely be Intel's primary driver of growth in the future, and the company is positioned to benefit on two fronts.

First, Intel's IoT Group provides embedded processors for smart devices. This allows them to benefit directly from IoT growth. Second, as exponentially more connected devices come online there will be a greater volume of data being produced. This will drive growth in the server market, which Intel currently has cornered.

Many investors and analysts expressed concerns over the drop in Intel's Client Computing Group, where revenue fell 16% from Q4, and 8% year-over-year. Despite this large drop however, Intel's revenue remained flat year-over-year, primarily due to the rise in Data Center Group revenue (servers) and Internet of Things revenue (embedded chips). Instead of a sign of trouble, this quarter is a testament to Intel's success in establishing themselves in the IoT industry and diversifying their core business. View more