Intel CEO Pat Gelsinger is hopeful Chipzilla will regain its 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 sure how
Intel stated in its 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 for 2025 and beyond. Us detailed its entire portfolio of products expected for the coming years and will tackle both AMD and Apple in the server, notebook and desktop segments.
During the earnings call, Intel CEO Pat Gelsinger admitted that they have lost share and also the momentum they once had, but that changes now and the company can expect a stabilization in the current year.
“We lost share, we lost momentum. We think that levels off this year,” Chief Executive Pat Gelsinger told investors on a conference call.
While Pat believes Intel is in good hands, Wall Street analysts and the market itself aren’t really sure how Intel anticipates stabilization so soon. Factors are the huge inventory amounting to $13.2 billion or the equivalent of 151 days that is still there along with the poor reception of Intel’s Sapphire Rapids Xeon CPUs that were recently released to address AMD’s EPYC portfolio.
The blue team anticipates that Sapphire Rapids Xeon CPUs will continue to power various data center and cloud customers including the likes of Amazon, Microsoft, META and others. The DRAM market is also holding out hope for that to be the case, however other analysts have predicted that AMD’s EPYC CPUs will continue to gobble up server market share and may just Hit or miss 30% by the end of this year More products in the current lineup will be released soon, such as the Genoa-X, Bergamo and Siena.
“I don’t think Intel is in a position to start regaining share yet. Someone going from 1% to 13% is significant. It tells you that there is now a viable second entrant in the server processor market that has momentum and is gaining momentum,” Rau said.
“Intel had high hopes that Sapphire Rapids would allow them to fight AMD,” said Lucas Keh, a Third Bridge semiconductor analyst. “However, our experts say it has been a disappointment so far due to Intel’s continued inconsistency in delivery.”
“Intel’s turnaround is taking some time, exacerbated by the economy, but I think their plan is working,” said Glenn O’Donnell, an analyst at Forrester Research. “It is delivering new products and manufacturing is accelerating with agreements from other chipmakers to use Intel’s manufacturing capacity.”
But there are also some analysts who are predicting that the plans implemented by CEO Pat Gelsinger and his team at Intel are working and if that continues to be the case, we can expect a good outcome for Intel as well.
