EE Times reports Intel is expected to generate $2 billion in revenue from chips outside x86 processors. The figure represents half of Intel's expected revenue growth, it will come from the firm's relatively new embedded, NAND flash and wireless product lineups.
With its relatively new embedded, NAND flash and wireless products, “Intel has dramatically outperformed its competition on revenue growth and/or profitability from 2008-2012 and is poised to extend these gains in 2013,” said Ross Seymore, an analyst with Deutsche Bank Equity Research.
“These segments have the potential to generate about 50 percent of the $4 billion revenue growth implied in our 2013 estimates, leaving us more confident in upside potential and Intel's share price,” said Seymore who continues to rate Intel’s stock as a buy.
Specifically, Seymore said revenue for Intel’s Intelligent Systems Group has nearly doubled over the last five years and is poised to top $2 billion in 2012. Its NAND Solution Group revenue has tripled since 2008, and enjoys the best margins in the NAND industry by focusing on high value segments. Intel’s wireless group, still in an early stage, is already a $2 billion business, and the company believes it can grow more than 50 percent in 2013, the analyst said.