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Intel's 50% revenue to come from non-x86 chips

Posted: 26 Jun 2012     Print Version  Bookmark and Share

Keywords:x-86  NAND flash  wireless  analyst 

According to a financial analyst, Intel is expected to earn Rs.10,928.96 crore ($2 billion) in revenues from chips outside its traditional PC x86 processors.

With its relatively new embedded, NAND flash and wireless products, "Intel has dramatically outperformed its competition on revenue growth and/or profitability from 2008-2012 and is poised to extend these gains in 2013," said Ross Seymore, an analyst with Deutsche Bank Equity Research.

"These segments have the potential to generate about 50 per cent of the .21,857.92 crore ($4 billion) revenue growth implied in our 2013 estimates, leaving us more confident in upside potential and Intel's share price," said Seymore who has been tracking Intel.

Specifically, Seymore said revenue for Intel's Intelligent Systems Group has nearly doubled over the last five years and is poised to top Rs.10,928.96 crore ($2 billion) in 2012. Its NAND Solution Group revenue has tripled since 2008, and enjoys the best margins in the NAND industry by focusing on high value segments. Intel's wireless group, still in an early stage, is already a Rs.10,928.96 crore ($2 billion) business, and the company believes it can grow more than 50 per cent in 2013, the analyst said.

The development is arguably a historic milestone for the company. Intel has tried for years to expand beyond the PC market with little success to date. During the dot-com boom in acquired a handful of communications chip companies and even started a data centre business, but had to jettison nearly all its plans after the market turned sour.

Intel is not without its risks. The company could see slower than expected PC unit growth, face market share losses to AMD, or see selling prices decline, he noted.

- Rick Merritt
  EE Times

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