SO WE'RE GOING TO ACCELERATE IN THOSE AREAS. IT WILL BOTTOM OUT AT SOME POINT, BUT WHAT WE REALLY NEED TO DO IS OPERATE EFFICIENTLY AND MAXIMIZE THE PROFITABILITY IN THAT TIME. IT'S THAT WE'RE GOING TO SCALE THAT INNOVATION RELATIVE TO THE GROWTH. I KNOW YOU'RE NOT GOING ANYWHERE BUT FROM A BOARD PERSPECTIVE, BUT IS THIS SORT OF LINING HIM UP TO BE NEXT IN LINE?KRZANICH: THIS WASN'T SO MUCH ABOUT SUCCESSION PLANNING AS IN WHO'S NUMBER TWO AND NUMBER THREE, ANYTHING LIKE THAT. WE'VE TRIED TO SCALE THIS SUCH THAT THIS IS THE ONE TIME THAT WE NEED TO DO TO REALLY PUSH THIS ACCELERATION OVER. AND OF COURSE, THOSE LAYOFFS THAT ARE GOING TO COME WITH THE RESTRUCTURING THAT YOU HOPE TO EXECUTE OVER THE NEXT YEAR SAVING $1.4 BILLION ANNUALLY.

IT IS A GREAT BUSINESS FOR YOU GUYS. seller: Brian & Brandee Krzanich location: Atherton, Calif. price: $13.25 million size: 7,403 square feet, 6 bedrooms, 9 bathrooms A nearly one-acre estate set on one of the most prime avenues in Atherton, arguably the Silicon Valley’s most desirable residential neighborhood, recently popped up for sale with a $13.25 million pricetag. YOU KNOW, IF WE TAKE A LOOK AT THIS AT THE END OF THIS EFFORT, INTEL WILL HAVE, IF YOU MEASURE BY SAY REVENUE PER EMPLOYEE, THE MOST EFFICIENT OR THE HIGHEST REVENUE PER EMPLOYEE IN THE HISTORY OF THE COMPANY. THOSE ARE FRIENDS. A nearly one-acre estate set on one of the most prime avenues in Tax records reveal the estate is owned by high-profile businessman Built in 2007, the house appears meticulously maintained, and it’s clearly been upgraded with a slew of custom features — Crestron home automation and a sophisticated array of security cameras and surveillance technology. THIS LOOKS LIKE THE SORT OF MOVE THAT'S GROOMING SOMEBODY FOR A MOVE HIGHER, BUT THERE'S NOT MUCH HIGHER ONE CAN GO, ESPECIALLY AFTER WHAT WE SAW AT DISNEY JUST A COUPLE WEEKS AGO. AND THOSE ARE THE DATA CENTER, MEMORY, IOT, FPGAs, I BELIEVE THOSE CAN BECOME AS BIG OR BIGGER THAN THE PC OVER THE NEXT FEW YEARS.

ALTERA YOU DID THAT STOCK YOU DID THAT DEAL WHEN YOUR STOCK WAS AT 34, YOUR STOCK IS NOW AT 31. IT IS STILL THE CORE OF THE BUSINESS BUT YOU ARE RIGHT IN THERE'S BECOMING TWO SEGMENTS OF INTEL. I UNDERSTAND COMPLETELY THE ALTERA ACQUISITION BUT IT'S ONLY $359 MILLION IN REVENUES FOR THIS QUARTER.

AND THEN THERE'S PROJECTS THAT WE'RE GOING TO BECOME MORE EFFICIENT ON AND/OR THEY HAVE NOT HAD A RETURN OR SHOW A RETURN IN THE FUTURE AND SO WE'RE GOING TO CLOSE THOSE DOWN.

THIS IS -- YOU KNOW, AT INTEL LOOK AT MY OWN CAREER.

KRZANICH: YOU KNOW, WHERE THEY'LL BOTTOM OUT I'M NOT EXACTLY SURE. AMD USED TO REALLY OPERATE IN THAT AREA.
IT'S GOING TO CONTINUE TO HELP FUEL AREAS THAT YOU DO EXPECT TO GROW. CAN YOU GIVE US A SENSE AS TO WHY YOU FELT THAT WAS THE RIGHT NUMBER?KRZANICH: SURE. NEW INTEL WE GET THIS PROGRAMMABLE LOGIC, TWO INTELS ONE GROWS SLOW BUT HAS A LOT OF CASH, ANOTHER GROWS REALLY FAST AND IT IS WHERE YOU PUT THE ASSETS.KRZANICH: WELL, I DON'T KNOW IF STACY SMITH AND RUNNING MANUFACTURING IS OLD INTEL. HE'D WORKED IN SALES EARLIER IN HIS CAREER. AND THAT'S A GROWTH COMPANY. AND THERE'S THE NEW SEGMENTS THAT WE'RE GOING TO MOVE INTO AND ACCELERATE AT A FASTER RATE. YOU GUYS HAVE LARGELY DOMINATED THEM IN THAT CATEGORY AS WELL.

IT'S NOT THAT THIS IS NOT A GROWTH BUSINESS, IT'S JUST SLOWED DOWN. THANKS SO MUCH FOR JOINING US EXCLUSIVELY ON "SQUAWK ON THE STREET." We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services. AND IT'S LINED VERY NICELY WITH THE STRATEGY THAT WE HAVE IN THE DATA CENTER.KRZANICH: SO YOU TAKE ALL OF THOSE, WE THINK THERE'S A LOT OF GROWTH IN THE DATA CENTER.CRAMER: YOU KNOW, I GET CONFUSED SOMETIMES BECAUSE, I MEAN, FOR INSTANCE, SECURITY UP 5%, LINKED UP 12% YEAR OVER YEAR.
I LOOK AT WHAT NXPI DID, I LOOK AT WHAT AVAGO DID AND NOW BROADCOM. On July 18, mighty Intel—more than HP, Silicon Valley’s foundational company—will turn 50 years old. BUT IT'S ONLY 651 MILLION REVENUES. WHAT'S DIFFERENT AND ACTUALLY BETTER HERE IS WE'RE NOT HAVING TO EXIT. AND IT IS ONE OF THE GROWTH AREAS. BRIAN, ALWAYS GREAT TO HAVE YOU. BRIAN, YOU'RE A PLAIN SPOKEN GUY, SO MAYBE YOU CAN MAKE THIS CLEAR FOR ME WHAT EXACTLY THIS RESTRUCTURING SIGNALS ABOUT THE PC MARKET.

SO WE'LL SLOW IT DOWN.

Age: 54. OR IS IT INDICATIVE OF THIS LARGER TREND OF ENTERPRISES NOT BUYING THEIR OWN HARDWARE AND SHIFTING THEIR FOCUS TO THE CLOUD?KRZANICH: SO, JON, I THINK IT'S A BIT OF BOTH.

AND SO THIS IS ABOUT DOING THAT WHILE SHIFTING AND ACCELERATING FASTER INTO THOSE GROWTH AREAS.