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The shares of Intel dropped significantly over 6% by the market close on 18 December 2020. The technology industry and stock market participants have been recently showing concerns over Intel’s future revenue prospects as Microsoft plans to build its in-house chip. Intel since many years has been in partnership with Microsoft for making primary processor for Microsoft.
As per the statistics available at Intel’s website, 54% of the Company’s revenue is generated from its PC-centric business and the remaining 48% through the data-centric business.
The PC-centric business of Intel includes its Client Computing Group (CCG) and is its largest business unit. CCG provides platform products that link people to data, so that each person can focus, create, and engage himself to unlock his potential. The PC market is the most important component of Intel’s business. The key products under this include connectivity, graphics, and memory.
As Microsoft is planning to develop its own chip, it seems that there is a fear among the market participants that Intel might experience a significant impact on its revenue.
In Q3 FY2020, Intel generated US$18.3 billion in revenue through its data-centric businesses. Through its PC-centric business, Intel earned US$9.8 billion.
A Glance at Microsoft Pluton security processor:
As highlighted above, Microsoft is developing its chip, which would be used in servers and surface PCs, known as Microsoft Pluton security processor.
Microsoft Pluton security processor is a chip-to-cloud security technology founded in Xbox & Azure Domain. The chip aims to bring more security advancements than before to the Windows PCs. Microsoft highlighted that the step taken is the start of a voyage with ecosystem & OEM partners.
In Microsoft’s future computers, the primary focus would be given to the security equipment, which would be built into the CPU. The processor would have hardware and software, firmly incorporated into a unified method and designed to remove complete vectors of attack. The design would be such that it would be difficult for attackers to hide under the operating system, and it would enhance the Company’s ability to protect the operating systems from physical attacks. It would also stop the theft of license & encryption keys. Further, the processor would provide the capacity to retrieve from software bugs.
