Intel Corporation (NASDAQ:INTC) has experienced some flattening trends in the consumer segments, likely due to Windows XP’s expiration, says a report from BMO Capital Markets by analysts Ambrish Srivastava, Gabriel Ho and Kulin Patel, issued on April 16, 2014. According to the analysts, enterprise has performed well in the consumer PC segment, witnessing a lower rate of decline ”with some segments flattening out” on a year over year basis.

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Strong demand from higher-end segment

In the Data Center Group, segment average selling price (ASP) should continue to grow. Analysts note that enterprise segment has surged in the first quarter of 2014, where substantial growth was contributed from HPC, which ascended by double digits and the cloud, networking and storage segments saw growth of more than 20% on a year on year basis. The report notes that ASP would continue to grow with “as the mix is shifting to higher-end SKUs in nontraditional DCG segments, such as the cloud.”

Also, according to analysts, Intel Corporation (NASDAQ:INTC) is performing above average in the higher-end segment of the market. NAND SSD attach rates, which are a major contributor to the NAND business is also rising 30% quarter over quarter.

Intel gaining presence in tablet market

Intel Corporation (NASDAQ:INTC) outperformed consensus estimates of the Street during its first quarter 2014 earnings, but the company is undergoing a slowdown with a decline in personal computers. The chip maker is trying to gain sizable share in the tablet segment. Intel is now supplying chips to many tablet manufacturers and over 20 ODMs with around 100 models compared to only one client, last year.  Apart from Android based devices, the company is also expected to gain from the offerings from Microsoft Corporation (NASDAQ:MSFT).

The personal computer segment declined for the eighth consecutive quarter and Intel Chief Financial Officer Stacy Smith states that the company is expecting a further decline in 2014.

“But there are pretty clear signs of stabilization,” Smith told Reuters, last week. “You have an aging install base of PCs and we’re bringing exciting products to the market place and that’s leading to the pockets of strength we’re seeing in the PC market.”

BMO Capital Markets analysts have an Outperform rating on Intel Corporation (NASDAQ:INTC) with a price target of $31.