The Role Of Artificial Intelligence In Intel's Corporate Transition Strategy

The secret of change is to focus all of your energy, not on fighting the old, but on building the new. Intel Corporation (NASDAQ:INTC), in the face of a declining PC market projected to decline still further, with disruptive factors at play in the data center market, and with the company's revenues across all business segments largely static over the last four quarters, is in the throes of developing responses to their significantly changing business environment. Despite a rise in Intel's overall revenue of 9.1% YoY in 3Q16 to a record high of $15.8 billion, largely due to unexpectedly high sales in the PC market, just two segments - the Client Computing Group and the Data Center Group - contributed 85% of the company's earnings. With the PC market in structural decline, increasing big cloud provider data center market control, and greatly increased data center competition, Intel is faced with shrinking defensive flexibility, which does not bode well for its long-term future. Performance in 4Q16 is expected to retreat from 3Q16 levels, as distribution channels reduce their stock.