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Technology Stocks : Semi Equipment Analysis
SOXX 291.39+2.8%Nov 26 4:00 PM EST

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To: FJB who wrote (50767)1/13/2011 10:19:56 PM
From: FJB2 Recommendations  Read Replies (1) of 95479
 
Our Data Center Group had yet another terrific quarter, with revenue up 15% sequentially and annual revenue up, a very strong 35%. So, what is driving this growth in servers and will it continue?

Let me share with you some data that can help put the server market in perspective. <span style='font-size:20px;color:blue'>In 2010, total traffic crossing the internet was roughly 245 exabytes.This is greater than all the previous years combined.</span> Over the next five years a billion more people will join the global online community, with 15 billion new connected devices including PCs, smartphones, tablets, embedded devices and smart TVs.

We estimate this will increase the data footprint across the Internet to over 1,000 exabytes
, more people, more devices, more usages. This dynamic will require high-performing servers from Intel for years to come. It is not just servers.

Intel continues to grow its presence in the Data Center with processors for storage systems and networking infrastructure, with plans to refresh the entire Xeon server product line in the first half of 2011. Intel is very well positioned to benefit from the growth of the Data Center and the build out of cloud computing.

Next, I want to comment on our Atom business. The industry shipped around 37 million netbook units for the year, which represents a 20% growth rate. In 2011, Intel plans to bring some unique innovations to netbooks to keep the category growing, including increased feature sets in products for mature markets, and lower price points in emerging markets that will attract first-time buyers. But Atom is much more than netbooks.

We exit 2010, with excellent momentum in our embedded business, with over 4,900 total design engagements and over 1,700 design wins for Embedded Atom devices. It's notable that nearly one half of all the Atom embedded design win activity is coming from China. I mentioned this momentum to highlight that the main drivers of our success with Atom in the embedded business segment are very applicable to the smartphone, tablet and consumer electronic market segments.

seekingalpha.com
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