Can Intel Corporation (INTC) Save PCs?

The Haswell generation offers users a compelling reason to upgrade – better performance. Intel will give gamers the choice of either 6 or 8-core CPUs, which may offer up to a 50% speed improvement over the current generation. That kind of improvement is enough to compel a lot of gamers to upgrade their machines.

Intel Corporation (NASDAQ:INTC)’s main competition in this space is Advanced Micro Devices, Inc. (NYSE:AMD). The company may have a stronghold on the gaming system market, but it’s well behind Intel in the high-end desktop processor market. In the last few years, Advanced Micro Devices, Inc. (NYSE:AMD) has lost significant market share in desktops to Intel as the latter ramped up the performance of its chips. I expect that trend to continue.

Advanced Micro Devices, Inc. (NYSE:AMD) won’t be transitioning to 28nm technology until the end of 2013, so it’s highly unlikely they’ll be able to compete with Intel on performance or cost. At the same time, Intel will be releasing its Haswell socketed chips (22nm). The smaller form factor makes them less expensive to produce.

This is a very clear win for investors. Intel Corporation (NASDAQ:INTC) ought to be able to dominate this market for a considerable time.

The savior of the PC?

The PC industry is struggling, but it’s not going away anytime soon. Intel’s leading-edge designs offer a more compelling reason for users to upgrade than its previous generation. Manufacturers producing high-end machines with Intel’s newest chips ought to see better sales than the rest of the industry.

When it comes to the PC market, Intel seems to be doing all the right things to make sure it’s biggest business doesn’t fall off a cliff while it expands into more mobile platforms.

The article Can Intel Save PCs? originally appeared on Fool.com and is written by Adam Levy.

Adam Levy owns shares of Apple. The Motley Fool recommends Apple and Intel. The Motley Fool owns shares of Apple and Intel. Adam is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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