If You Think Intel Is Dead Money, Think Again - GuruFocus.com

It was almost a flat year for Intel (NASDAQ:INTC) in 2016, as the stock was up roughly 5% over the year. In comparison, most of the Intel's competitors such as Advanced Micro Devices (AMD), Qualcomm (QCOM) and NVIDIA (NVDA) delivered huge returns to stockholders. However, that does not means Intel is out of the game, as it still holds 80% market share in the worldwide microprocessor market mainly due to its leading position in the PC industry. The company has been generating huge profits by selling high-end desktop processing chips to data centers. It is highly likely that CPUs will continue to see reasonable growth in data centers, as the company requires huge computation power to make use of the big data they have gathered. According to marketsandmarkets.com, the data center market is projected to reach $32.30 billion by 2020 from $18.56 billion in 2015, which represents a compound annual growth rate of 11.7%.