Intel Corporation (INTC): Do All Roads Lead Here?

If the low-power server market grows larger than the 6% to 10% that Intel currently estimates it to be, the presumed erosion of Intel’s Xeon line of server processors may be replaced with Intel’s upcoming line of Avoton Atom processors. Naturally, it’s going to take multiple Avoton processors to match the power of a single Xeon processor, not to mention that Intel’s peak profitability was reached during the 2009 to 2010 Intel Atom heydays.

The road ahead
Considering Intel Corporation (NASDAQ:INTC) currently trades at a 35% discount to the S&P 500, investors aren’t necessarily getting their hopes up that Intel will successfully capture new market share. However, if the server industry continues shifting toward more efficient power designs, Intel Atom may be able to increase its market share, which could translate into increased profitability for the company.

Between smartphones, tablets, and now servers, there’s no denying that Intel has put a serious amount of faith in its Atom processor.

The article Do All Roads Lead to Intel Atom? originally appeared on

Fool contributor Steve Heller owns shares of Intel. The Motley Fool recommends and owns shares of Facebook and Intel.

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