Intel Corporation (NASDAQ:INTC)’s new Atom low-power C2000 is believed to be a very ‘compelling offering’ that not only is six times more efficient but is also capable of penetrating into new markets leveraging prior technology in mobile devices, says a report from RBC Capital Market by analysts Doug Freedman and Earl Hege.

intel

Intel made big announcements

Intel Corporation (NASDAQ:INTC) held a data center event yesterday, during which Diane Bryant SVP, General Manager, Datacenter and Connected Systems Group made three big announcements:

A new 22nm Atom C2000 Silvermont-basedSoC

Over 50 new system designs enabled within micro server, cold storage and entry networking

A new rack scale architecture with next-gen interconnects using silicon photonics

C2000 to challenge ARM

C2000 offered by Intel is the successor of 32nm S1200 primarily built to gain more traction in competition to ARM 32 and an upcoming 64-bit solutions with optimized solutions for the lower compute intensive/lower power market, which is a low-single-digit percentage of the broader workload intensive computing market. As of now, C2000 is undergoing production process and will be fixed over 22nm process technology Atom’ Silvermont Core. C2000 is expected to give a higher speed of up to 7 times than C1200, and performance will be 6 times better.

C2000 from Intel Corporation (NASDAQ:INTC) will provide 13 exclusive solutions, extending low power architecture into new segments including line cards, network security appliances, cold storage, micro servers, switches, routers and wireless. The analysts expect ROI on these new devices to be attractive.

Emphasis on software

The chip maker is giving more importance to software design and is reorganizing itself into a more vertical company. The analysts expect that Intel Corporation (NASDAQ:INTC) will soon be able to reap the benefits of this change in strategy—as a result applied multiples could increase fueled by an improving margin profile.

Intel Corporation (NASDAQ:INTC) is catching the interest of many OEMs even before the launch of its highly potential over-the-edge 14nm line up in 2014.  The analysts’ survey into the handset ecosystem reveals that in 2014 Intel’s platform may be at its best.

PC Sales on decline

PC segment is declining and is at all-time low. According to the analysts, the unit’s sales might decline 7 percent year over year. Decline in PC sales can be the biggest threat to the bullish sentiments on the stock. If sales remain low in the second half of 2013 then data center or software segments will need to perform better than expected to counterbalance the effect.

RBC Capital Market has assigned a Buy rating with a price target of $29 to Intel Corporation (NASDAQ:INTC). Analysts are looking forward to Intel offering more customized-centric solutions and base their thesis on this expectation. Intel’s new platform approach can make it a most trusted supplier in the micro server, entry network, and cold storage markets.