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Intel Becomes A Data Center Centric Semiconductor Company

The highlight of Intel's (NASDAQ:INTC) Q1 2015 earnings call along with the recent rumors of possible acquisitions of Altera (NASDAQ:ALTR) and Broadcom (NASDAQ:BCOM) is the recognition by Wall St. that the company has made the long-term turn toward being a high growth, Data Center Centric company as mobile recedes in the background. CEO Brian Krzanich, just two years into his tenure, has made the most of his manufacturing background to prioritize Intel's investments around a business unit that revenue wise should exceed the client group within five years and possibly set up barriers that no ARM-based server competitor will be able to break into given the complexities of the whole server system design.

Before Paul Otellini retired from Intel, he highlighted the double-digit growth that servers were experiencing due to the rise of data required to service the explosion of smart phones and tablets. Furthermore, he recognized that Intel made more profits with each additional server than they would capture in silicon in the mobile space. It went unappreciated by analysts and investors. Thus the investment in mobile had to continue until the company saved face by losing over $4B in 2014 in order to show the world Intel was serious. Read more