Intel Corporation (NASDAQ:INTC) has shown a promising growth in its data center product line-up and is exploiting its manufacturing advantage to defend its servers and PC market shares, along with capturing more markets in tablets and mobiles, according to Stifel analysts Kevin E. Cassidy and Dean Grumlose.

intel

Stifel analysts have a Buy rating on Intel Corporation (NASDAQ:INTC) with a price target of $28.

New product unveiled at IDF, will work well for Intel

In the Intel Developer Forum (IDF) 2013, the chip maker unveiled a much advanced CPU for servers, storage and networking applications. Intel’s new product, the 22nm Xeon E5 v2, supports 50 percent higher performance and is 45 percent more energy efficient compared to its 32 nm predecessors. Furthermore, the chip maker announced 21 Xeon E5 v2 SKUs along with 13 low-power Atom-based server SoC SKUs, which it unveiled earlier.

A 22nm Bay Trail SoC was showcased by Intel Corporation (NASDAQ:INTC), which is based on a new architecture for primarily $100 tablets to $500 2-in-1 (tablet mode/clamshell PC mode) products. Bay Trail can power Android, Windows 8, Chrome, Linux, and MacOS. According to a third party lab test, the new chip is capable of powering the devices with higher performance with a similar battery life. Bay Trail will carve out a significant place for Intel in tablet/low end PC markets, and may stabilize the rate of decline in revenue, according to analysts.

In the conference, Intel Corporation (NASDAQ:INTC) came up with its next-generation CPU, Quark, which is one-fifth the size of an Atom and 1/10th power consumption. The CPU is focused on a broad range of ‘Internet of Things’ applications.  Analysts are of the opinion that Quark may gain significant ground in the coming times.

Revenue expected to rise

Stifel analysts feel that Intel Corporation (NASDAQ:INTC) unveiled products that will be launched within the next six months, contrary to the trend of announcing 2-3 year product pipelines at IDF. This shows the management’s confidence in its product portfolio.

The company maintained that revenue of its data center group is expected to rise double-digit percentage year over year in 2013. The first half of 2013 was almost flat compared to the first half of 2012, which according to analysts, indicates double-digit sequential growth in the third quarter 2013 and fourth quarter 2013.

Intel stands second to Qualcomm in LTE baseband processors, so there were only a few handset/smartphone design announcements. The chip maker has a LTE data and 3G voice product, but combined LTE data and voice is not coming until 2014. However, Intel Corporation (NASDAQ:INTC) can enhance its progress as there are no near-term changes in the LTE standards.