I get that, and the requirements for cloud vendors, will most likely keep growing. But Intel has already lost and even given up on mobile cpus/socs. If they loose the laptop space, desktop will not be far off. I can easily see them loosing the laptop space, if arm designs kan win on price and energy efficiency, and match them on low-mid performance.
Desktops and laptops are largely flanking verticals to help defend the real money maker, servers. Even if they start to lose laptop/desktop market share, it'll still take a while for someone to loosen their hold on the server market.
So in other words, as he said, he would short Intel because they hold all the market, and have nowhere to go but down. As you said, even if they lose consumer shares, it'll just be a matter of time before someone loosens their hold on servers.
