The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (Trefis) -- Last month semiconductor giant Intel (INTC) announced its acquisition of Cray's (CRAY) world-class interconnect personnel and intellectual property business for $140 million. Intel has been looking to build its high-performance computing portfolio through faster processors and quicker interconnects.
In July 2011, it bought networking vendor Fulcrum Systems in order to build its data center portfolio, and in January 2012, it acquired InfiniBand assets from QLogic (QLGC) to build a chip-to-chip and server interconnect.
AMD Looks to Regain ShareAMD (AMD), over the years, has lost a significant portion of its server market share to Intel. Keeping in mind recent events such as its collaboration with HP for networking solution & server technologies and the recent acquisition of SeaMicro, we see AMD regaining some of the lost market share from Intel.
Entry of ARM-Based Players in Server MarketARM-based players, who are mainly into PC microprocessors, are also likely to enter the server market. This will lead to increased competition that can erode Intel's market share. The technology and expertise gained as a result of the recent deal with Cray will help Intel build its high-performance computing portfolio as it looks to scale its server performance. However, we are of the view that, though Intel will continue to dominate the server market, it could see a slight year-over-year decline in its server market share and will hold around 80% share by the end of our forecast period. You can change the market share value in the chart above to see how the change affects our $30.82 price estimate for Intel. Click here to find out how a company's products impact its stock price at Trefis. Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.
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