Intel (NASDAQ: INTC) is one of the best-performing stocks of the year, increasing by more than 50% since October 2013. The reason for investor’s regained trust in the semiconductor chip maker is due to the strength the company showed in their recent financial report for the second quarter of 2014 and high expectations from some of the company’s future plans as well as a strong performance from the company’s Internet of Things Group.

Intel’s financial performance was strong both from one-quarter to another and year over year. Revenues increased 8%, and net income increased 40% in the year over year. The next earnings report will be reported on October 14th, and the company’s upcoming milestones are expected to continue the uptrend until the end of the year. According to the company’s CFO and analyst’s revenues for the third quarter are expected to be approximately 4% higher than in the second, and 5% higher year over year.

The company’s strategy to extend operations from the technology for PCs to the Internet of Things is proving itself to be productive. The Internet of Things, or IoT, is a combination of multiple technologies, embedding computing into devices and connecting them to the internet. Any devices that we can think of, including cell phones, washing machines, coffee makers, watches, all can be connected to the internet for different purposes. The cloud infrastructure supporting these devices changes the computing industry, and Intel was able to recognize the immense opportunity. The company sells chips as well as entire systems for software development and software solutions to markets that leverage the most from the IoT technology, like the medical, automotive and industrial markets. Intel’s Internet of Things Group has been very productive. In 2013, Intel generated $1.8 billion in sales and $550 million in operating income only from the Internet of Things segment.

The software, IoT Developer Kit, has become popular. In a press release on October 1st, Intel announced the extension of the IoT Developer Kit by releasing a new XDK IoT Edition, which simplifies the development of IoT apps written in JavaScript and can be used to develop an HTML5 companion app that runs on phones, tablets and PCs to control the IoT devices.

Besides the IoT, Intel has also extended into other segments, like Chrome based systems, and is very close to hitting the 40 million tablet goal in sales. In addition, the Broadwell 14mn chips for Apple’s (NASDAQ: AAPL) MacBooks will be available by the holidays. The new chip, according to Intel, is fanless, small, and the most energy-efficient Intel processor so far.

On the down side, Intel has experienced declining orders in the traditional PC market segment in recent years, and this decline is expected to continue. While Intel takes measures to shift slowly from a reliance on traditional PC’s, it is still an important segment for the company. It is also important to remember that Intel operates in highly competitive industries and its operations have high costs and are difficult to reduce in the short term.

Intel’s good run is expected to continue and even accelerate from the several new developments planed. Stay tuned for more information.

About Intel (NASDAQ: INTC):

Intel Corporation incorporated in 1968, designs and manufactures integrated digital technology platforms. The platform consists of a microprocessor and chipset. The Company sells these platforms primarily to original equipment manufacturers (OEMs), original design manufacturers (ODMs), and industrial and communications equipment manufacturers in the computing and communications industries. The Company’s platforms are used in a range of applications, such as personal computers (PCs) (including Ultrabook systems), data centers, tablets, smartphones, automobiles, automated factory systems and medical devices. The Company also develops and sells software and services primarily focused on security and technology integration.