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Intel Fundamental Analysis February 2024.

Intel Fundamental Analysis.

Intel Fundamental Analysis. The company is a global leader in the semiconductor industry and a primary provider of microprocessors and chipsets. The company is strategically shifting its focus from a predominantly PC-centric business to more data-centric ventures, such as artificial intelligence (AI) and autonomous driving.

In 2021, Intel’s data-centric businesses contributed 48.6% to its total revenues. It means that the segment is achieving revenue parity with its traditional PC business. Over the past five years, the share of data-centric businesses in Intel’s revenue stream has been steadily increasing. This growth indicates its potential to become a more dominant revenue source shortly.

Operational Structure.

To better align with the evolving market dynamics, Intel has revamped its business segment structure. This restructuring aims to enhance transparency, focus, and accountability. As of the third quarter of 2023, Intel’s operational segments include:

  • the Client Computing Group (CCG) contributing 55.6% of total revenues.
  • The Datacenter and AI Group (DCAI) with 26.9%.
  • The Network and Edge Group (NEX) at 10.2%.
  • Mobileye at 3.7%; Intel Foundry Services (IFS) at 2.2%.
  • All Other at 1.3%.

The CCG segment is focusing on high-growth areas including thin-and-light, commercial, and gaming, as well as emerging opportunities in connectivity. DCAI is committed to developing leading data center products such as Intel Xeon server and field programmable gate array products and spearheading the company’s AI strategy. NEX is concentrating on driving technological and product advancements from network infrastructure to the intelligent edge. Mobileye specializes in driving assistance and autonomous driving solutions. Lastly, IFS operates as a comprehensive, standalone foundry business. It provides a broad spectrum of manufacturing services, including sort and test capabilities, tailored to unique product needs






Intel Fundamental Analysis.

Manufacturing Expansion.

Intel is actively pursuing the expansion of its manufacturing capabilities to support its IDM 2.0 strategy. At the same time, it is focusing on integrated device manufacturing. In the second quarter of 2023, the company announced a significant investment of over 30 billion euros in collaboration with the German government. This investment will expand Intel’s new semiconductor manufacturing facility in Germany. This facility is working in conjunction with Intel’s existing wafer fabrication site in Leixlip, Ireland, and a planned facility in Magdeburg, Germany. Together, these sites aim to establish a unique, comprehensive semiconductor manufacturing value chain in Europe. Additionally, Intel plans to build a cutting-edge semiconductor assembly and test facility near Wroclaw, Poland. These developments should contribute significantly to Intel’s long-term growth.


Intel is making steady progress in its ambitious 5N4Y (five nodes in four years) program, aiming to reclaim its leadership in transistor performance and power efficiency by 2025. Following the launch of Intel 7, the company introduced Meteor Lake in the third quarter. This 14th generation of processors, also the first to be manufactured using the Intel 4 process, features a chiplet design with a 7nm build and employs extreme ultraviolet lithography (EUV). Intel 3 is on track to meet its yield and performance goals, and the company is preparing to release Sierra Forest (SRF) in the first half of 2024. Granite Rapids (GNR) is expected to follow soon after. Additionally, Intel has announced the development of glass substrates for advanced chip packaging. A pioneering product expected to be widely available in the latter half of this decade. This innovation aims to achieve 1 trillion transistors on a package by 2030.

AI Chips.

Intel has introduced AI chips for data centers and PCs, representing one of the most significant architectural changes in the company’s history in the last four decades. This strategic move will strengthen Intel’s position in the rapidly growing AI sector, which encompasses a wide range of applications from cloud and enterprise servers to networks, client volumes, and edge environments. The launch includes the Intel Core Ultra, equipped with a neural processing unit that offers 2.5 times better power efficiency for AI acceleration compared to its predecessor. This new chip also boasts enhanced GPU and CPU capabilities, enabling faster processing of AI solutions. This development aligns with the changing market dynamics and Intel’s commitment to advancing in the AI field.

Mobile Market.

Intel is advancing rapidly in the mobile market, shifting its focus beyond just chip production to include related hardware. This broader approach is enhancing its competitive position in the industry. The acquisition of Altera is a strategic move that supports this expansion. A key advantage for Intel in the mobile market is its early stage of development. This suggests a significant potential for exponential growth. Intel’s current product lineup in this sector has been well-received, and the company is continuously launching new offerings.

To further solidify its presence in this burgeoning market, Intel is making targeted acquisitions, such as Recon, to expand and diversify its portfolio. The company is ideally situated to capitalize on the substantial growth opportunities in the mobile market, thanks to its leadership in cutting-edge processing technology. This technological edge is increasingly crucial for producing high volumes at a low cost, positioning Intel to effectively meet growing demand in the mobile sector.

Car technology Market.

Intel’s acquisition of Mobileye has significantly accelerated its entry into the competitive autonomous car technology market, a space where companies like NVIDIA and Qualcomm have established dominance. Through this strategic acquisition, Intel has acquired access to a range of Mobileye’s advanced technologies, including camera systems, in-car networking, sensor chips, roadway mapping, cloud software, machine learning, and data management. This expansion of technological capabilities has not only broadened Intel’s customer base but also substantially enhanced its revenue growth, marking a pivotal step in its growth in the autonomous vehicle sector.

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