IoT looks like a potential area, but it will be so heavily contested.  I also think ARM (via QCOM, AMCC and others which use ARM cores) will be the clear favorite given its low power and low cost.  Most of the devices which are likely to be connected do not require the high end processors INTC makes.

Even if INTC were to suddenly make hefty inroads in the IoT segment, it will not enjoy the gross margins it needs to move the needle.  I hear what you are saying but IMO INTC will be profit challenged for some time to come.  It does have a lot of levers it can pull, specially in FAVS (where INTC spends billions per year), it can cut capital investment to continue to protect profits, so the dividend is probably very safe.  That said, I just do not see how it can reverse the set of challenges in a short period of time.  I am sure it will eventually but it will take at least a couple of more years, maybe longer.