However, looking ahead, a jump in PC sales is expected later this year when Microsoft unveils its Windows 10 platform, which could act as the fillip needed for PC users to upgrade their systems.
Additionally, Intel is pushing into other avenues of growth such as data center and network equipment, with the market for PCs, tablets and smartphones maturing.
“Our Buy recommendation reflects our view of attractive valuation, belief that fundamentals will improve in the second half of 2015 and plans to return cash to shareholders,” S&P Capital IQ Equity Analyst Angelo Zino said in a research note. “We see an aging PC landscape, market share gains and new innovative devices supporting PC sales, while higher cloud investments drive Data Center growth in the coming years.”
Market Vectors Semiconductor ETF
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Max Chen contributed to this article.