Is Intel getting under estimated ?

Well the short answer is no , Intel is still a market leader and highest gross revenue earner among chip makers.

Intel has the R&D capability and cash flows to bounce back as a formidable player.

In 2019, Intel was the №1 chipmaker by revenue, research firm Gartner said. It regained the top spot after Samsung took the lead in 2017 and 2018.

Intel had 15.7% market share last year, compared with 12.5% for No2 vendor Samsung. Intel’s chip revenue slipped 0.7% year over year to $65.8 billion amid a semiconductor industry downturn. Meanwhile, total worldwide semiconductor revenue fell 11.9% to $418.3 billion in 2019.

Recently the focus of the investors and the industry has shifted to its rivals like Nvidia, AMD and Qualcomm.

But all is not lost for Intel ?

Intel is trying to refocus itself from its personal computer business segment to Data centre,5G ,Artificial intelligence and Autonomous vehicles.

It was true that its been late on the mobile front and lost the chip competition to AMD and Qualcomm ,but on AI Intel is gaining a head start.

Intel Chief Executive Bob Swan is working to change the company’s focus to pursuing 30% of the total semiconductor market, rather than maintaining 90% of the market for central processing units, or CPUs.

Swan also has been selling off non-core assets. On Oct. 20, Intel announced a deal to sell its NAND memory unit to South Korea’s SK Hynix for $9 billion.

Gaming

Intel focus on shifting to gaming is aimed at taking NVidia heads on.Check out the link below.

5G

Intel Atom P5900 will start being deployed this year as a key component of 5G base stations.

Intel has the opportunity to be the leader here as Chinese players have been sidelined because of data security concerns.

Data centre

Intel has been a leader in this segment with most of the data centres running on its Xeon chips.

Intel detailed the future of its Xeon Scalable platform at its Data-Centric Innovation Summit.

Autonomous driving

Intel recently aquired MobileEye further augmenting its capabilities in this area.

Overall Intel seems to be rightly focussed on all the future tech and growth drivers ,what needs to be seen is how far it can capitalise and monopolise these markets as it did with the personal computer market.

What intel is facing today is intense competition and not being formidable enough to kill the competition , but having said that intel is still the only company with the cash balance and R & D to invest in emerging tech areas.

Intel should be on watch list !

Interests in tech ,economics and literature.

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