Intel proved to be a bright spot in the semiconductor market this week, as its earnings beat Wall Street analysts' expectations, based on its strength in the data center. (See Intel Earnings Flat As Cloud Growth Offsets PC Decline.)
Multiple analysts, including those quoted in this CNBC article, say Intel Corp. (Nasdaq: INTC) 's success in an otherwise down market for semiconductors marks its shift from being a PC company to data center focus.
Alex Gauna, an analyst at JMP Securities, tells CNBC that Intel has made the shift to the cloud, and is the dominant player there with 90% of the market. "Fundamentally, Intel is the cloud right now," he says. "They are completely dominant with their Xeon family of chips. And that really is the opposite side of the weakness in PC."
According to Intel, its Data Center Group revenue was up 8% quarter over quarter and up 12% on a year-on-year basis. That offset decline on the PC side in what was a flat overall revenue growth quarter.
— Carol Wilson, Editor-at-Large, Light Reading