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Tuesday, 30 January 2018

Focus on Data Center Business, Intel's Stock Value Rises

Intel's shares rose 7 percent on Friday. This is Intel's highest value for nearly two decades. This increase thanks to Intel's decision to move its business focus from PC business - which continues to slow down - into the data center business.

Intel

On Friday, Intel's share reached USD48.5 (Rp650 thousand) per share, making the chip maker's value rise nearly USD15 billion (Rp201 trillion).

According to Reuters reports, Intel investors are also not worried because Intel assured that the value of the company's stock will not be affected by the weaknesses of Specters and Meltdown that there are billions of its homemade processors.

The company from Santa Clara was instrumental in building the PC industry. Intel became one of the world's largest chipmakers thanks to the growing demand for PCs.

However, in recent years, people's interest to buy a PC actually decreased. Therefore, Intel focuses on making chips for data centers in order to increase revenue.

Data center businesses have a larger profit margin for Intel. Revenue from the division also rose about 20 percent to $ 5.58 billion (Rp74.9 trillion).

"Intel has succeeded in making a change from a PC-focused company to a data center-focused company, Intel's data center business is now contributing 47 percent of revenue," said Credit Suisse analyst John Pitzer. Intel's data center business also continues to show growth.

Intel estimates, their data center business will increase by a dozen percent while their PC business will grow less than 10 percent.

Meanwhile, analysts say, Intel will benefit from high demands for gaming computers, chip memory and Intel's modem sales increase to Apple.

According to Oppenheimer analyst Rich Schafer, Intel's modem sales rose 26 percent compared to the previous year.

Indeed, slowly, Intel began to replace Qualcomm as a supplier of modems for Apple. The reason is because the relationship between Apple and Qualcomm continues to deteriorate.

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