Intel Corporation (NASDAQ:INTC) has transformed itself. The company’s dependence on the declining PC market has hurt INTC stock. However, Intel news has been good as the company has made notable moves into new industries, and the stock has risen recently. With its new presence on high-growth technologies, INTC stock is again becoming a growth driver for tech investors.
Intel Has Long Been Tied to Declining PCs
The company maintains its title as the world’s largest chipmaker. However, its heyday during the tech boom of the 1990s remains long behind it. Until recently, today’s Intel seemed to have been left behind by Nvidia Corporation (NASDAQ:NVDA) and other hardware giants engaged in bringing the world the latest products. This has forced INTC to remake itself in the age of the smartphone and tablet.
Until recently, Intel stock had taken on the appearance of a tech stock in the vein of International Business Machines Corp. (NYSE:IBM) or Texas Instruments Incorporated (NASDAQ:TXN). INTC became a stock that still maintained a good reputation and provided quality products. However, it had ceased to produce cutting-edge products demanded by the market. Today, Intel has finally made moves to follow in the footsteps of Microsoft Corporation (NASDAQ:MSFT) and diversify away from PCs.
Intel Has Moved Into New Product Lines
One of Intel’s strategies to revitalize itself involved doing what was once unthinkable: joining forces with its long-time archrival Advanced Micro Devices, Inc. (NASDAQ:AMD). The company recently teamed up with AMD to produce a high-end laptop chip with AMD graphics and Intel processing.
Like Nvidia, INTC has also made moves to enter the self-driving car space by buying Mobileye. Additionally, it also acquired Soft Machines to speed up its processing and efficiency of its chips. Intel also purchased Nervana to enhance the company’s visibility in artificial intelligence (AI). The company has also made moves into the Internet of Things (IoT) market.
As our own James Brumley recently pointed out, the tech community has started viewing INTC as a PC company less and less. Data center solutions have become the company’s second-largest revenue source. Analysts predict data center will grow into Intel’s largest division as the PC business continues to shrink.