Opportunities To Grow in This Data-Centric Word Are Fairly Significant, Says Intel CEO

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“This market is the largest market that we’ve ever seen,” says Intel CEO Bob Swan. “We view our market share as roughly 23-25 percent. The opportunities we have to grow in this increasingly data-centric world is fairly significant. Our expectations are that we will grow share as we go through the next several years so we’re excited about those prospects despite the current digestion period we’re going through.”

Bob Swan, CEO of Intel, discusses significant growth projections for their high-performance products in an interview on Bloomberg Technology:

Opportunities To Grow in This Data-Centric Word Are Fairly Significant

Implied in our outlook for the full year we would be roughly at a 60 percent (margin) in 2019, which is a little lower than last year, and to a certain extent, that’s a good thing. I say that because we’re accelerating our transition to our next process node technology, what we call ten nanometer. When we go through those transitions the implications in the earlier stages of high-volume manufacturing is it has a dampening effect on gross margin. So this year we will be down a little bit from last year, but that was primarily driven on the progress we’re making in migrating to next node manufacturing technology.

We look at the what we call the expanded TAM guide of roughly three $300 billion dollars of silicon TAM. That market is the largest market that we’ve ever seen. We view our market share as roughly 23-25 percent. The opportunities we have to grow in this increasingly data-centric world is fairly significant. Our expectations are that we will grow share as we go through the next several years so we’re excited about those prospects despite the current digestion period we’re going through.

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Focus is On Building the Best High-Performance Technology

It’s an exciting time for the semi market. The opportunities to grow are fairly significant. In light of that, there’s increased competition intensity all over the place. Our focus is just on building the best products in the world. That’s always bringing technology, whether it’s to the data center market, whether it’s to the PC market, or whether it’s to the Internet of Things which is a growing part of our business, building the best high-performance technology in the world. That has stood the test of time. Our expectations are that we will continue to do that through 2019 and going forward.

When you look at the large cloud service providers their growth rates continue to be extremely strong. Ultimately, those growth rates need to consume the kind of technologies that we’re deploying, whether it’s TPUs or whether it’s FPGAs, they need to consume the kind of technologies that we’re building. Their end-market growth remains relatively strong. So we believe that as they go through this digestion period that demand signals will begin to pick up and we will benefit from that increased demand.

Opportunities To Grow in This Data-Centric Word Are Fairly Significant, Says Intel CEO



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