Intel's data center business was supposed to spark new growth. But the chip giant hit unexpected bumps on a road that turned out to be rockier than expected.

Intel's disappointing first-quarter report last week featured weaker-than-expected results in the data center business.Some analysts point to unexpected soft demand in the cloud data center market, which remains uncertain.

"The last few quarters, Intel has talked about how their recovery was going to be based on the second half the year," he told Business Insider."The big cloud providers were going to start buying server chips again. That didn't come through." "I do think it's going to happen. … If you see this huge growth where companies like Google, Amazon, Facebook. They have to buy more chips for more data center capability to make more money. The only question is when. The other question is China. The China economic scene hasn't been great for a year or so. There's a little bit of uncertainty right now."

"Last year everyone was screaming about expanding data centers," he said."These past three quarters, we've seen the cloud companies talk about slowing down data center build-out as they are waiting for capacity to catch up."

Intel’s stumble has been a boon for other chip makers to grab market share. AMD is a great example of this.

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