This Company Needs These 3 Trends To Take Hold: Intel Corporation (INTC) and More

In the smartphone arena, Intel is beginning to make inroads. The company has smartphones with Intel chips produced by Acer, Lenovo, Motorola Solutions Inc (NYSE:MSI), and others, but most of these are available in countries like Thailand, India, China, the U.K. and elsewhere. Since many experts believe smartphone growth will be most robust internationally in the future, this international focus could benefit Intel more quickly than trying for one big win in the U.S. marketplace.

Conclusion
The good news for Intel investors is the combination of the Ultrabook and continued adoption of Windows 8 should help the company’s PC division. Intel’s inclusion in the Surface Pro is a step in the right direction, but the company needs to find a way into the tablet market in a bigger way. While Intel is entering the smartphone market slowly, they need to push forward their mobile chip design so that manufacturers don’t have a choice, but to choose Intel to be inside.

While ARM is the current king in mobile, the stock already reflects this exuberance with a forward P/E ratio of over 51. Though ARM is expected to grow fast at over 21% in the next few years, I’m afraid investors have gotten a little ahead of themselves. While investors wait for Intel, the stock looks like a very good value. The shares yield over 4.25%, and currently sell for a discount to their expected 12.3% EPS growth rate. Even Microsoft can’t claim this, as the king of software boasts a yield less than Intel, and a slower expected growth rate. In the end, there are three trends that should push Intel forward, and patient investors stand to reap the rewards.

The article This Company Needs These 3 Trends To Take Hold originally appeared on Fool.com and is written by Chad Henage.

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