Intel is raising the dividend based on the view that the explosive growth of data will drive continued demand for Intel products
Year 2018 was a remarkable year for Intel with record revenue in every business segment and record profits. In 2018, Intel generated revenue of USD 1,100 Mn. In 2018, every segment of the business set new annual all-time revenue records.
The PC-centric business (CCG) saw continued strong demand for Intel’s higher performance products, and strength in commercial and gaming. CCG expanded its product portfolio for 2019 with the launch of the 9th Gen Intel Core processors and unveiled “Ice Lake”, the 10nm-based PC processor, which is expected to be in OEM systems on shelves for holiday, 2019.
Intel’s data-centric businesses grew 20 percent YoY in 2018. Intel announced that the “Cascade Lake” family of high-performance Intel Xeon processors with advanced AI and memory capabilities is now shipping.
The Internet of Things Group (IOTG) revenue declined 7 percent YoY. However, excluding Wind River, which Intel divested in the second quarter, fourth-quarter IOTG revenue was up 4 percent YoY, despite supply tightness.
Intel’s memory business (NSG) was up 25 percent YoY. Intel’s Programmable Solutions Group (PSG) also was up 8 percent YoY driven by strength in the data center and communications market segments. Mobileye was up 43 percent YoY as customer momentum continued. In 2018, Mobileye achieved 28 new design wins and 78 vehicle model launches.
Intel is delivering product leadership via six pillars of innovation -- process, architecture, memory, interconnect, security features and software. It also made strong progress in AI, 5G, autonomous driving, etc.
Intel listed weaker modem demand, slowdown in China, cloud customers absorbing capacity and a weakening NAND environment as areas to watch out for in 2019.
Intel is expecting a record 2019 revenue of approximately $71.5 billion. Intel is forecasting another record year and raising the dividend based on the view that the explosive growth of data will drive continued demand for Intel products.
—PRAKASH MALLYA MD, South Asia