I Know First Review: INTC Battle For Next Year

I Know First Review

I Know First Review

Intel Corporation is engaged in the design and manufacture of digital technology platforms. The Company sells these platforms to original equipment manufacturers (OEMs), original design manufacturers (ODMs), and industrial and communications equipment manufacturers in the computing and communications industries.

I Know First wrote a Seeking Alpha Article about Intel based on the positive algorithmic forecast for the stock on March 27th 2015. In addition, The article argued that Intel is often oversold and undervalued, even in times of good performance and steady dividend growth. Since that time, the stock price has increased 12.50%.

Intel has fallen about 3% year to date, even if this is a bad number we have to take in to consideration some other factors. Despite its bad yearly performance, something exiting has happened to the company the last three months: Its stock price rose nearly 23%.

Intel CEO Brian Krzanich’s strategic objective of transitioning the longtime PC chip king into a cloud and Internet of Things (IoT) leader is beginning to take hold.This company at this time is lot more than just PCs. we can use recent sales to support this statement. This numbers show investors that they can be confident on the brand.

A few sections around the world showed small signs of decline in server sales last quarter, overall, it was a banner Q3. The number of servers shipped in the third quarter jumped from 9.2% to 2.76 million, and once again, longtime industry leader Hewlett-Packard led the way with 613,101 units, good for 22.2% of the market.

It was not Intel’s total revenue that hit the attention off investor’s interest the past few months. Sales where $14.5 billion and  this is more o less flat if we compare it to the same quarter last year which was $14.6 billion, and earnings per share (EPS) actually declined 3% to $0.64.

This results where  because of a 7% drop in Intel’s client computing group revenue. That’s the bad news. The good news is that despite the decline in its largest division, Intel was still able to post revenue results nearly equal to 2014’s Q3.

On a smaller scale, Intel’s IoT unit also went up double digits last quarter to $581 million. Combined, data center and IoT make up a larger piece of Intel’s total revenue pie.

forecast intel

(Figure 1: INTC forecast 22nd March ’15) 

From this forecast we can also realize how the algorithm predicted correctly the path of the stock price. During the 3-month period the stock rose 3.03%