As we all know, Intel is working hard to get away from the shrinking PC industry. In order to survive the PC decline, the chip maker has been trying to change the format and redesign itself to concentrate on chips for data centers and connected devices instead.
Chart depicting Intel’s focus areas
Intel’s renewed focus possibly comes out clearer in a chart that it included in its most recent 10-Q filing to clarify its future path, according to Business Insider. In the filing, the chip maker states that the chart is intended to mirror its drive to convert from a “PC company to one that powers the cloud and billions of smart, connected computing devices.” In the chart, the PC does not even get a separate section; rather, it is included under “Things & Devices.”
“As more ‘things and devices’ become smart and connected to the cloud, there is more noteworthy interest for data centers to associate these gadgets, as well as to catch and break down the information they make,” the company states.
Overall, it means that Intel desires its chips to be in all Internet connected devices, for example, mobile phones, autonomous cars and PCs, and process all data generated from those devices through Intel-powered data centers. Once this done, the chip giant would get to control the so-called “virtuous cycle of growth,” in which every section helps its growth, the report says.
The idea is not new for Intel followers. CEO Brian Krzanich uncovered the thought for this “virtuous cycle of growth” at last year’s Investor Meeting and shared more details in a blog post in April. Nevertheless, it’s an intriguing concept that impeccably depicts the changes taking place within the organization, which also is the world’s biggest chip maker.
Price target raised for Intel
Nomura has raised its price target on the chip giant to $38 from $35. Intel’s Data Center Group is one of the toughest businesses to predict as there is “no reliable third-party date” the analyst firm noted. “The customer base is highly fragmented, and yet a handful of high-volume vendors tend to binge and purge, creating quarterly volatility,” Nomura said.
Many view Intel’s data center guidance as “excessively positive,” yet Nomura believes it’s achievable. Nomura believes Intel’s new Broadwell-E server will support strong results. The analyst firm expects this chip to find harmony among cost and performance, allowing “data centers to scale out quickly while keeping TCOdown.”