Stefan Mileschin

Financial community got it wrong

After Intel announced that it had to delay its 10nm production to 2019, financial analysts around the world reacted with negative stock comments and valuation. Most of them got things wrong. Intel with its $17 billion highest ever revenue showed magnificent growth in the data center and it made that $17 billion without 10nm.

The data center sector is where Intel grew the most and this is the highest margin and the highest profitable market. For every few hundred smartphones and devices, you need a server and there are more and more connected device that need more data centers.

With AI and ML expansion, data center plays a key role too as you need to make sense of your data and need more storage and compute power.
Data center and AI mean margins

AI is at its infancy but is something every single serious company, even outside of IT, is investing money in - with data lakes and different AI approaches to put them ahead of their competition. This is the next generation battlefield and it will result in higher sales in the data center market.

This is where Intel and IBM will make a lot of money and AMD will make some too. AMD does have an excellent chip but it takes a lot of time to convince companies on a larger scale to go for AMD. AMD will have a price advantage for sure and will win in some price-sensitive markets.

https://fudzilla.com/news/pc-hardwar...ndustry-s-butt