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Many say that Intel (INTC) is going down the drain especially now that it is the "cheapest stock on the market." In the fierce competition between other tech giants in the market, Intel must be able to overpower the other companies. This can be done by means of choosing the right moves at the right time unlike what it did when it changed leadership - a good move, but a little too late.

However, this does not mean that there is no hope for Intel stock especially now that the mobile devices industry is growing stronger than ever. When Intel stock investors obtained a copy of the quarterly earnings of the company last April, things were not great. This was because not only was the gross income 17% lower than the previous quarter, the revenue was also 7% down. With the dismal numbers aside, Intel still remains a relevant company in the mobile world. Here are three reasons why Intel stock is still worthy of an investment:

New Leader

As previously mentioned, Intel changed leadership. Paul Otellini unexpectedly resigned from the CEO position he held since 2005 and he was replaced by Brian Krzanich. Many critics say that this change in leadership is critical in the history of Intel - critical in such a way that it can either be a good thing or a bad thing.

Nevertheless, the company desperately needs this transition especially now that the mobile world is quickly expanding. Krzanich has the power to tip Intel into the right direction, but will he be able to? This question remains to be answered and potential investors need to keep an eye on this development.

Great Connections

Intel was once considered the top semiconductor company in the world. One of the reasons why it was able to achieve that was due to having strong connections. Intel still has plenty of these connections despite the huge decline in the PC market during the first quarter of this year. This hit Intel negatively, but still it makes processors for a company that is still faring well in the PC market, Apple (AAPL).

There are rumors that Intel may have the opportunity in the future to create processors for Apple and this time, for its mobile products. This still remains a rumor, but there is a huge possibility given the fact that Krzanich has solid manufacturing background. Intel has been developing processors for several chip makers and this may be the right time for the company to make an offer that Apple cannot refuse.

On the other hand, Intel is one of the founders of the new operating system being developed by Samsung, which is known as Tizen. Samsung is trying to remove itself from the grasp of Google's Android with stories circulating that its upcoming product, Galaxy S5 might use Tizen and not Android. Samsung and Intel just verified their commitment to the Tizen project last July regardless of being in the face of a significant battle against the operating system giants iOS and Android.

In spite of what appears to be a huge conflict, Samsung is a mobile powerhouse and with Intel behind it, the company may have a real chance. This is definitely good news for those who are still thinking about whether or not to invest in Intel stock.

Still in the Game

There is no denying that, even though the company is behind its other competitors, Intel is making its move to dominate the market once again. It has started to join the tablet world. ARM may have powered the Surface RT from Microsoft, but Intel was chosen to build the processor for the Surface Pro from Microsoft, which is a more advanced tablet. Additionally, Samsung Galaxy Tab 3, both the 8 and 10.1 inch devices, contain the Haswell chip from Intel. Clearly, Intel is on its quest to gain more shares in the mobile market.

The Time to Buy

It is true that Intel's stock pays 3.79% in dividends and comes with a payout ratio of 48.6% or 12 times trailing earnings. This means that it can still be in the upper side of the game especially if the company can gain a huge share in mobile. It is quite possible with Haswell increasing in momentum and the Broadwell chip architecture will come out next year. These advances make Intel stock a winning investment.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: Why Intel Stock Is Not A Lousy Investment