A Snapshot Of Intel’s Business

by Trefis Team
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Intel (NASDAQ:INTC) is still dominant in the semiconductor industry, controlling over 90% of the data center market and nearly 80% of the consumer PC market. However, the landscape has started changing with Nvidia making strong inroads in the server market and AMD challenging Intel with its new Ryzen and EPYC processors. To give investors a quick overview of Intel’s business, we have created an interactive dashboard using Trefis’ technology that shows what Intel does, how it has performed in recent years, and how is it likely to grow in the next 2 years.

Intel’s Revenue & EBITDA Composition

The Client Computing Group, which includes microprocessors and chipsets for PCs, mobiles and tablets, accounts for nearly 55% of Intel’s revenue. The Data Center group is the second biggest segment, constituting nearly 29% of revenues. The other two primary segments, Internet of Things and ‘All Other’, account for 5% and 11% of Intel’s revenue, respectively.

Intel’s Past Revenue & EBITDA Growth

Between 2013 and 2017 (full year estimated), Intel’s revenue increased from $52.7 billion to an estimated $63 billion, growing at a CAGR of 4.5%. This is a healthy figure for a company that has a dominant share of its market. However, the annual growth in Intel’s EBITDA stood at a slightly lower figure of 4%. Much of this can be attributed to the decline in margins in 2015 and 2016, due to price competition and increased input costs. You can see segment-wise details of its revenue and EBITDA growth on our dashboard.

Intel’s Future Revenue & EBITDA Growth

We expect Intel’s annual revenue to increase from $62.8 billion in 2017 (estimated) to $67.9 billion in 2019, implying a CAGR of 4%. In addition, we expect EBITDA to grow from an estimated $25.3 billion in 2017 to $27 billion in 2019. The company will benefit from its server product line refresh, strong increase in average processor prices due to demand for high end computing, as well as continued expansion in the Internet of Things market.  To see segment-wise details of revenue and EBITDA growth, click here for our dashboard.

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