In the field, the goal is to reach 40% market share with its new 10nm products in 2021 (current market share can be negligible, which marks it has entered a new field). Of course, this is consistent with the adoption of 5G. Intel confirmed the demand for the product during the April earnings conference call. Today, the entire network market is worth more than $20 billion, of which Intel is worth about $5 billion.
Therefore, in any case, the revenue of the data center is accumulating in the short term, and the long-term growth trend of cloud and 5G has obviously not changed, including the opportunity to gain a large market share in the network field.
In fact, in addition to these core businesses and most CPU businesses, Intel also has some adjacent businesses. We pointed out in a previous article that Intel’s total connection data is already equivalent to Nvidia, and the growth rate is comparable to Nvidia, although each of them is small.
After achieving $1 billion in revenue for the first time in the third quarter of 19, the Internet of Things declined slightly in the first quarter due to the impact of new coronary pneumonia. However, historically, the return rate of this sector has only a low double-digit. The income of the “moving eye” was also affected by the new coronary pneumonia, which increased by 22%. Intel’s most cyclical 3D NAND business grew 46% to reach 1.3 billion US dollars. Finally, Intel’s FPGA team also achieved a small increase of 7% to US$520 million.
Although this covers all Intel market segments, there is more content than Intel reports. For example, Intel said in January that its AI-related revenue was US$3.8 billion, an increase of more than 30% from 2018. In our previous article, we pointed out that Intel’s opportunities in the field of artificial intelligence are one of its main growth drivers. In the next 5 to 10 years, this market opportunity may be worth tens of billions of dollars. In addition, the connected part of Intel Data Center Group (about USD 2 billion in 2019) also reported strong double-digit growth, based on the use of silicon optoelectronics and Optane persistent storage.
Finally, Intel is investing in some projects that have not yet generated much revenue, but this may become Intel’s next $5 billion (“Apple”) business. Although the “mobile eye” is the smallest part of Intel’s report, it has the greatest opportunity. Intel also said that by 2030, the total investment in ADAS, computing silicon for autonomous vehicles, and lidar/radar sensors will reach tens of billions of dollars, while the investment in robot taxis will exceed 100 billion dollars.
In addition, Intel will launch its first discrete GPU product later this year. Intel is investing in a complete product portfolio to compete with all GPUs and GPU divisions of NVIDIA.
