Beyond being just a PC-centric company
Intel’s largest segment in terms of revenue is the PC-focused Client Computing division, a business unit that includes central processing units (CPUs) for PCs. In 2023, Client Computing revenue amounted to 29.3 billion U.S. dollars, a fall of nearly 30 percent within two years. As a result, this has impacted the company’s overall earnings, with Intel’s revenue in 2023 amounting to 54.2 billion U.S. dollars in 2023, a fall of 14 percent as compared to the previous year. To minimize risk and diversify its offering, Intel’s solutions now also span beyond PCs and servers, tapping into the Internet of Things, AI, 5G, and autonomous driving markets.Ambitions to grow its foundry business
Another sign of Intel’s broadening business capabilities is the development of a new standalone business unit in the form of Intel Foundry. As part of the first annual conference for its foundry business held in February 2024, Intel highlighted its plan to become the world's second-largest foundry by 2030. Currently, the semiconductor foundry market is dominated by Taiwan Semiconductor Manufacturing Company, with Intel looking to overtake Samsung in the foundry rankings.Intel competes on multiple fronts
Competitors in the computer processor and graphics markets include AMD and Nvidia, with this trio of companies having mixed successes in their AI roadmaps. Undoubtedly, Nvidia is the star of the AI boom, although all three companies have indicated they plan to further increase their AI offerings. Intel also faces competition from the British semiconductor and software design company Arm Holdings, offering competing technologies for CPUs. Intel's PC chip business could lose out further to Arm, such as Apple having now moved its entire Mac lineup from Intel to Arm-based Apple silicon chips.A focus on AI and the foundry business
Looking ahead, Intel is well-placed to benefit from the rollout of AI PCs, supplying chips capable of supporting AI applications. Beyond PCs, one area of the business that is likely to receive even greater attention is its Data Center and AI segment, particularly as the AI chip market continues to mature. This, along with the continued development of Intel Foundry, may well be the catalyst for a period of growth that the company has long been hoping for.
