If you’re a tech company, each year starts with great promise at the Consumer Electronics Show (CES) in Las Vegas.
And this year looks very good for Intel Corporation (INTC).
In mid-December, I discussed Intel’s big move into wearables and the Internet of Things (IoT), which are both about integrating our machines and toys with ourselves.
There was a great deal of concern in the tech community that Intel had completely missed the mobility trend and was floundering, hoping somehow that its PC and laptop markets were going to be able to generate decent revenues for the forseeable future. That hope wasn’t very realistic.
But new CEO Brian Krzanich made a bold move once he took the helm, by choosing to avoid fighting for space in the mobility market as a latecomer. He instead chose to look forward and move the chip-maker into the next next big thing, wearables and their essential elements — sensors that link everything to everything else, or IoT.
The most recent CES was the coming out party, but Intel didn’t stop there. INTC also showed off its wearables at NRF 2015, or The Big Show, retail’s version of CES that’s in New York City this week.
Since CES is more a geek and gadget show, INTC brought out its inner geek. Intel announced things like its RealSense 3D processing that it’s working on in partnership with all the leading computer makers. Also, INTC showed off its work with Land Rover on distracted driving, Asus’ new phone and world’s slimmest 2-in-1 device and Toshiba’s newest small tablets.
What’s more, with all the good buzz and bright future INTC in the fast-changing world of mobility and IoT, the Semiconductor Industry Association just announced that semiconductor sales were up in November 9% year over year, with Asia registering a 12% increase and the Americas an 11% increase. Only Japan showed a decline, with Europe registering a slight 4% growth.
But that means a maturing second-generation market beyond desktops as well as increased spending in developing markets looking to boot up and get online. That’s good news for Intel — it means INTC has some time to make its move into new sectors gradually and strategically, not desperately and quickly.
That brave new world is on display this week at NRF 2015. The demos set up this week in NYC are all about Intel’s less geeky, consumer-facing side, where retailers can get an idea of what INTC has in store for consumer tech.
And there’s a pretty impressive list it’s built with a number partners:
- Wearables that help keep you connected, as well as other that help you stay fit and well rested.
- Personalized Marketing, MemoryMirror and Interactive Shopping — allowing retailers to develop more enriching shopping experiences for in-store and online customers but delivering integrated user experience data and feedback.
- Mobile Payment Solutions and Data Protection Technologies to help understand real-time shopping and inventory data as well as protect and transport secure customer and merchant data.
Plus, INTC has a slew of IoT products on demo to brand itself as a major force in this burgeoning technology trend. Smart Coolers, Beverage Intelligence and end-to-end retail analytics showcase where INTC is and where it’s going.
There’s also a new low-power Core M chip set that Intel has launched to great acclaim. It will likely be the cornerstone of Intel’s new chips built to be integrated into smaller forms that are running off batteries, not constant power supplies.
So, all in all, Intel looks like it’s entering this year on a good foot. If you’re looking for a solid stock that is a market leader but still has room for solid growth with a decent dividend, then you can’t go wrong buying Intel.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
