Intel CEO Commits to Lead Tech Inflections, Play Bigger Role in Customer Success, Focus on Profitability
Wall Street analysts gathered at Intel headquarters in Santa Clara, California, recently for the company’s 2019 Investor Meeting, which featured executive keynotes by Intel CEO Bob Swan and business unit leaders. Swan said demand for the analysis, transmission and storage of data is growing at a faster rate than at any time in history. He cited Intel’s unmatched collection of assets as key to winning share in a nearly $300 billion total addressable market (TAM) for silicon by 2023. Intel estimates the creation of data is increasing 25 percent each year, driving a 50 percent compound annual growth rate (CAGR) in demand for computing.
“We are very focused on leading technology inflections that will accelerate and create demand for data – AI, 5G and autonomous,” Swan said. “We believe in an expanded market opportunity we can play a bigger role in the success of our customers. Our emphasis is on improving execution, accelerating innovation and evolving our strong culture while making disciplined investments in pursuit of profitable growth.”
Extending Product leadership for the Data-centric Era :
Intel has redefined its product innovation model for the data-centric era of computing, which requires workload-optimized platforms and effortless customer and developer innovation. Intel discussed products like the 2019 “Lakefield” hybrid CPU that showcases Intel’s differentiated design capabilities, and said the company’s pace of innovation was increasing.
Intel’s Data Center Group expects to introduce a new Intel Xeon product every four to five quarters with plans to ship a 10nm-based “Ice Lake” server CPU in the first half of 2020. In the PC-centric business, Intel discussed several products in flight including “Tiger Lake,” a 10nm-based CPU planned for 2020 that will feature a new CPU core architecture, an Intel Xe graphics engine, support for the latest display technology and more.
With a range of 10nm-based products planned for 2019 and 2020, Intel’s 7nm process is also well underway. Intel’s first 7nm-based product, an Intel Xe Architecture-based GP-GPU for data center artificial intelligence (AI) and high-performance computing (HPC), is expected to launch in 2021.
Leading Technology Inflections :
The opportunity to turn data into business value is driving key technology inflections that Intel aims to lead like AI, 5G network infrastructure and autonomous driving.
- AI is a fast-growing workload, especially in the data center. Intel estimates the TAM for AI silicon in the data center is growing at a 25 percent CAGR and is expected to reach $10 billion by 2023. In 2018, Intel captured roughly 40 percent of the current estimated $4 billion data center AI silicon opportunity, achieving $1.7 billion in AI revenue. The company aims to expand its prospects with an exciting range of AI-optimized products including the new 2nd Gen Intel Xeon Scalable processor, programmable solutions and purpose-built chips like the forthcoming Intel Nervana Neural Network Processors.
- 5G will usher in the convergence of computing and communications in the network and at the network edge. Intel estimates the TAM for silicon in the network and edge (including network silicon, internet of things and autonomous cars) will grow to $65 billion by 2023. In 2018, Intel’s revenue associated with this grew more than 20% to $9.5 billion.
- Autonomous driving is another major tech inflection that Intel is poised to lead by building on Mobileye’s strong momentum in advanced driver-assistance systems (ADAS). Mobileye CEO Professor Amnon Shashua told investors that in addition to providing the technology to safely power autonomous cars, Mobileye is pursuing new revenue streams including the monetization of mapping data and mobility-as-a-service. Shashua said, “Transportation as a service, enabled by robotaxis, is a game changer for mobility, and I’m here to tell you that we plan to go all in on the global robotaxi opportunity.” You can learn more in this video:
Above Photo Caption : Sandra Rivera, senior vice president and general manager of the Network Platforms Group, speaks at the 2019 Intel Investor Meeting on Wednesday, May 8, 2019, in Santa Clara, California. (Credit: Walden Kirsch/Intel Corporation)
Intel Goes ‘All-In’ on Robotaxi Opportunity – Video
