Intel Corporation (NASDAQ:INTC) is optimistic about its Data Center Segment

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By Stefan Larson on November 29, 2014 Company

Intel Corporation (NASDAQ:INTC), one of the leading companies in the semi-conductor arena, held a meeting with its investors on November 20, 2014. Several presentations were given by the management of the company in order to brief the investors about Intel’s future endeavors. The company is constantly changing itself in order to accommodate the rapidly changing technology.

The company posted its guidance outlook for the revenues, and the figures were way better than the estimates. Moreover, the company also announced a dividend increase. Intel Corporation (NASDAQ:INTC) raised its dividend by $0.96 for each share.

The announcements made in the meeting were good, but that does not mean that the company is doing all well. The company is still facing some difficulties. Intel Corporation (NASDAQ:INTC) has not successfully grabbed its market share in the mobile device segment. This weakness can put a limitation on the earnings growth of the company. Perhaps this was the reason why the management only increased the dividend a little.

The company announced that it plans to introduce around 40 million tablets in the market. This announcement was made to ensure the investors that the company can and will penetrate the mobile market. This step of the company is being appreciated, for the future of computing will lie in the tablets and smartphone industry probably. If the company remains successful in the mobile phone industry, the concerns of investors will be vanished. Right now, many of the company’s investors are worried about its future, for the market of PCs shrinking. Intel Corporation (NASDAQ:INTC) has predicted a very low revenue growth for its coming year.

On the bright side, the company is right on track in accomplishing its target of 40 million tablets. The company has made a lot of expenditures along the way: it spent around $1 billion in its recent quarter to boost its mobile business segment. The company did acknowledge in its meeting with the investors that it was spending a lot in its mobile segment industry, but then again, no one can blame the company for it is needed to make Intel’s future bright and stable.

The company is making a lot of progress in its data center area, which is good news. The data center group of Intel Corporation (NASDAQ:INTC) has become one of the strongest and most stable segment of the company. The revenue of Data Center segment increased by 4 percent during the first 3 quarters of the year 2014 whereas the revenues of PC segment rose just 4 percent during the same time period. The management of the company expects even higher figures from the data center segment; the company is of the view that the figures will be as high as 18 percent by the end of the year 2018.

Coming to the stocks prices of Intel Corporation (NASDAQ:INTC), the company, on the last trading day of November 28, 2014, started its stocks at a price of $37.04 and closed at a price of $37.25.