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Intel’s CEO Bob Swan Plays the ‘Long-Term Viability’ Card in Defending the Company’s involvement in Cellular –Modem Technologies and ‘Optane.’

Intel’s CEO, Bob Swan in his first address to journalist after taking up the company’s top seat, admitted to the team being ‘paranoid,’ but in his view, the paranoia will pay off in the long-run. His ‘Paranoia remarks was an indirect reference to the company’s former boss Andy Grove popular line- ‘Only the Paranoid Survive.’

In his address, swan tackled some questions from the journalists including concerns on the company’s investments in cellular-modem technologies and the high-performance memory technologies- Optane considered stale by investors. Intel’s stock took a hit of 1.36% during the previous business day closing the session at $52.95. However, the company still has a solid market capitalization of $238.12 billion.

Having served as the company’s chief financial officer before ascending to the CEO position in January, Swan spoke with a strong sense of financial wisdom, particularly while addressing the financial viability of the company’s aforementioned investments- that do not appeal to investors.

Bigger Pie

Swan believes that the company’s market has not been shaken only that now they are serving a 20% share in a $300 billion industry as opposed to an earlier 90% in a $60 billion industry. This analogy is about the development of high-performance computing, especially from cloud-data centers and 5G cellular infrastructures. However, a section of investors are not sold to the economic sense of the company’s involvement in the development of cellular-modem technologies and the ‘Optane’- high-performance memory technology.

Opportunities in the Future

Like other optimists for the 5G cellular networks, Swan is optimistic that the successful deployment of the network will present Intel with immeasurable opportunities although it is hard for everyone to see that now.

Swan Said that “If you put numbers to that strategy — if we are deploying toward these higher-growth data-centric parts of the business — revenue grows faster and not all spending has to grow in line with revenue.”

Swan together with his deputies stated that the company’s endgame is to establish dominance in the 5G technologies that would eventually pay off upon the mass deployment of the network- already in progress.

Swan defended cellular modems stating that it will take time for the modems to become necessary in computing. About, optane, the CEO said that the investment will pay off in a few years to come and that investors need to worry.

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