Intel Corporation (INTC), a US multinational semiconductor chipmaker and a world leader in computer technology, continues to deliver a double-digit growth. According to the recently released financial report for Q3 2014, quarterly revenue increased by 7.9% y-o-y to USD 14.56 bn. Adjusted EPS climbed 10.0% y-o-y to USD 0.66. Internet of Things Group (+14.2% y-o-y) and Data Center Group (+16.4% y-o-y) became growth drivers due to increased demand for tablet processors and servers for data centers. An increase of 4.5 pps y-o-y in EBITDA margin also adds positivity and points to higher efficiency. Growth rates will remain high in the next quarter. According to the company’s guidance, revenue is expected to reach USD 14.7 bn (+6.3% y-o-y), while gross margin will amount to USD 64% (+2 pps y-o-y). Intel generated operating cash flow of USD 5.7 bn, allowing the company to pay out generous dividends (totaling USD 0.225 last quarter, implying a 2.6% dividend yield) and bought back a significant share of its own shares (the company spent USD 4.2 bn for the buyback program last quarter). The company still has USD 16.4 bn from a recently announced buyback program.Intel's chips have become increasingly popular among Asian manufacturers. Lenovo uses processors of Intel and Samsung uses the company’s modem chips in its smartphones.Intel is aggressively expanding its business. The company recently announced the acquisition of a 20% stake in two China-based mobile chipmakers Spreadtrum Communications and RDA Microelectronics. These companies are leading Chinese semiconductor companies developing mobile chipsets for smart phones and other electronic equipment intended for use in 2G, 3G and 4G wireless networks. The transaction is currently being considered by the Chinese authorities, and upon its closing Intel and Spreadtrum will engage in the joint development of mobile chipsets using the most advanced technology of the US company. Deliveries of new chips to Chinese manufacturers of mobile devices, partner companies of Spreadtrum, are expected to begin around the middle of next year.We believe that expansion of the company’s business will improve Intel’s financial performance, and this factor, along with generous dividend and the ongoing buyback program, will propel shares in the mid-term.We raise our target fundamental valuation of Intel (INTC) shares to USD 40, and the short-term technical target is USD 39.