Intel CEO Pat Gelsinger hopes Chipzilla will regain lost market share to AMD this year, but Wall Street isn’t sure yet.
Intel hopes to regain market share from AMD this year, but market watchers aren’t quite sure how
Intel stated in their most recent earnings, which are some of the most disastrous they’ve posted in years, that the company will get back on track in 2023 and move toward market leadership by 2025 and beyond. We’ve detailed their full product portfolio expected over the next several years that will address both AMD and Apple in the server, laptop, and desktop segments.
On the earnings call, Intel CEO Pat Gelsinger admitted that they have lost market share and also the momentum they once had, but that is now changing and the company can expect stabilization in the current year.
“We lost market share, we lost momentum. We think that will stabilize this year,” CEO Pat Gelsinger told investors on a conference call.
through Reuters
While Pat believes Intel is in good hands, Wall Street analysts and the market itself aren’t quite sure how Intel anticipates stabilization so early. The factors are the huge inventory amounting to $13.2 billion or 151 days equivalent still out there along with the poor reception of Intel’s Sapphire Rapids Xeon CPUs recently launched to tackle AMD’s EPYC portfolio.
The blue team expects Sapphire Rapids Xeon CPUs to power several cloud and data center customers, including Amazon, Microsoft, META and others. The DRAM market is also hopeful that this would be the case, but other analysts have predicted that AMD’s EPYC CPUs will continue to gobble up server market share, perhaps reaching or breaking 30% by the end of this year, with more products coming soon. the market. current lineup such as Genoa-X, Bergamo and Siena.
“I don’t think Intel is in a position to regain market share. Someone going from 1% to 13% is significant. It tells you there’s now a viable second competitor in the server processor market that has momentum and is gaining momentum ‘ said Raw.
“Intel was hopeful that Sapphire Rapids would allow them to compete with AMD,” said Lucas Keh, semiconductor analyst at Third Bridge. “However, our experts say it has been a disappointment so far because of Intel’s continued inconsistency in delivery.”
“Intel’s turnaround is taking some time, exacerbated by the economy, but I believe the plan is working,” said Glenn O’Donnell, an analyst with Forrester Research. “It’s bringing in new products and increasing production with agreements from other chipmakers to use Intel’s production capacity.”
through Reuters
But there are also some analysts who predict that CEO Pat Gelsinger and his team’s plans at Intel will work, and if that continues, we can expect a good outcome for Intel as well.