In case you missed it, Intel has bought McAfee, a security company best known for virus scanning and other malware detection software, for $7.68Bn (on revenues of about $2Bn). This is a tidy multiple in any marketplace, particularly as McAfee is not the dominant player. It is the largest deal Intel has ever done, and the largest pure-play security deal ever. Plus the deal was in cash.
Add to this the Intel plan to purchase the Wireless Solution unit of Infineon (for $1.4Bn) and you now have the direction in which Intel plans to go. More Security in the hardware.