Intel Corporation (NASDAQ:INTC) is dealing with the end of the consumer PC market as we know it. Years of technological advancement over investors left the company complacent when the mobile revolution hit. The company is doing its best to go mobile, but many analysts have pointed to the faster than expected decline in its PC business as reasons to lower targets.
A new report from Jefferies, authored by Mark Lipacis and Sundeep Bajikar, challenges that view. The company’s progress with its Bay Trail low power tablet processors have impressed the analysts. The first lower sub-$500 tablets with the processors were launched by Dell Inc. (NASDAQ:DELL) this week. That’s a great indicator for Intel Corporation (NASDAQ:INTC).
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Intel is still a Buy
There has been a slew of negativity on Intel Corporation (NASDAQ:INTC) in recent months as the PC market continued to slump in new and unexpected ways. The company is in transition at the moment and their mobile market is not as lucrative as the PC market was for the company. The Jeffries analysts are optimistic about Intel because they believe the company’s tone has changed.
Intel Corporation (NASDAQ:INTC) no longer views low priced tablets as PC companions. The company recognizes the danger the devices hold for its business, and its trying to get into the market. The Dell Inc. (NASDAQ:DELL) are the first examples of the new devices, but the trend shows that there are more on the way.
Bay Trail is meaningful for Intel
Bay Trail, the name for the current generation of low power, low cost Intel products, is a meaningful change for the company according to the Jefferies report. The technology costs less than ARM designs and it is more power efficient. Those trends should help to make Intel Corporation (NASDAQ:INTC) a force in the market going forward.
Intel’s Silvermont architecture and its 3D transistor technology give it an edge over competitors. Now that Intel Corporation (NASDAQ:INTC) is putting the processors into devices, the market may see a turnaround in attitude.
The Jefferies report puts a $30 price target on stock in Intel Corporation (NASDAQ:INTC). The company rate the stock as a Buy at its current price. On today’s market shares in the processor manufacturer traded up to $22.82, up close to 1% for the day’s trading.