Shares of Intel (NASDAQ:$INTC) jumped up to a 52-week high after the company easily surpassed estimates with an outstanding 3Q report in late October. Despite the continuation of the company’s challenges in its client computing group due to a stagnant PC market, it pulled enough strings in other fast-growing areas to satisfy investors’ expectations.
The company’s latest results are proof that it is making good progress to thrive in a post-PC era. Intel’s combined revenue from its Internet of Things and non-volatile memory solutions divisions jumped 30% year over year to $1.74 billion. These businesses now supply almost 11% of Intel’s total revenue, up from 8.4% in the previous year.
Looking into the future, these two segments are set to play a greater role in driving Intel’s overall business thanks to the availability of multibillion-dollar opportunities. But is Intel doing enough to keep the competition at bay to establish its dominance in these areas?
First, the non-volatile memory solutions group was the biggest gainer of these two emerging segments last quarter, delivering year over year growth of 37% and supplying $891 million in revenue. The massive growth delivered by the NVM business is no surprise as sales of solid-state drives based on 3D XPoint memory technology, which Intel jointly developed with Micron Technology (NASDAQ:$MU), took off remarkably. Intel’s 3D XPoint technology, as a result, will carve a bigger slice of the fast-growing SSD market that’s expected to hit $60 billion in revenue by 2023.
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