Omnitek technology to complete Intel’s programmable chips business

This month Intel (INTCannounced the acquisition of British programmable chip maker Omnitek. The company was founded in 1998. Omnitek specializes in developing programmable chips for video and artificial intelligence applications. With this acquisition, Intel is buying a company that it says has become a trustworthy supplier of video and visual-related programmable chips to many of its most important customers.

Cloud computing companies use programmable chips that Omnitek makes to support video-related applications such as Internet video conferencing. Intel is counting on Omnitek to help it better serve its existing programmable chip customers and win over new ones. Intel says that Omnitek’s technology will be a great complement to its programmable chips business. It estimates that the market for programmable chips is worth $8 billion and growing.

Intel Doubles Down on This $8 Billion Market

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Programmable chips revenue rose 8%

Intel generated revenue of $612 million in its programmable solutions group, which includes the programmable chips business, in the fourth quarter. Intel’s total revenue for the December quarter was $18.7 billion, up 9.4% YoY. Revenue rose 6.0% YoY for Advanced Micro Devices (AMD) but declined 20% YoY at Qualcomm (QCOM) in the December quarter. Broadcom (AVGO) recorded an 8.7% YoY increase in revenue in its first quarter, which ended in February. Revenue dropped 24.3% YoY for NVIDIA (NVDA) in the fourth quarter, which ended in January.

For Intel, the programmable chips market provides an avenue for the company to diversify its revenue outside the personal computer processors market.

Latest articles

Marathon Petroleum (MPC) stock has been tumbling in Q3, driven by geopolitical tensions, oil price uncertainty, and weaker refining conditions.

This week, AT&T CEO Randall Stephenson noted that AT&T (T) is on track to reduce its leverage multiple to about 2.5x by the end of this year.

Jeff Bezos announced that Amazon had placed an order of 100,000 electric delivery vans from Michigan-based startup Rivian.

Bad news on the trade war front appears to have led to a fall in the broader US equity markets today. Cannabis ETFs were also trading in the red.

Energy Transfer (ET) stock has recovered in the last two trading sessions after investors hammered it on its plans to acquire SemGroup (SEMG).

Software-as-a-service company Datadog (DDOG) made a smashing debut on Wall Street yesterday. After its IPO, DDOG's shares surged 40% in intraday trading.