Intel is shifting its focus to data centers and newer technologies like the internet of things, automotive and high-performance quantum and neuromorphic computing. The PC market it has relied on continues to erode.
Intel's "other markets" businesses represented less than 5% of the company's revenues in 2016, but could be a primary source of revenue by 2021, according to CEO Brain Krzanich, speaking at the company's annual investor day last week.
Signaling a new era, Krzanich said Intel will now put the first chips from each new generation of processor technology into its data center products instead of PCs for the first time ever.
Intel's current business relies on two primary areas: PCs and data centers. But as the tech landscape changes, Intel must change, or risk extinction.
Getting there won't be easy, however. The company eliminated 15,000 jobs in 2016, and warned investors last week not to expect much growth until its new investments start to pay off with actual products. Still, the company is working to make headway in new areas and to create a new future. Intel bought deep learning startup Nervana Systems last summer.
In total, 2016 PC shipments equaled 269.7 million units, a 6.2% decline from 2015, according to Gartner. It's the fifth consecutive annual drop in PC shipments.