“We lost share, we lost momentum. We think that will stabilize this year.”
Intel CEO Pat Gelsinger hopes Chipzilla will regain market share lost to AMD this year, but Wall Street is still unsure.
Intel hopes to regain market share from AMD this year, but market watchers aren’t sure how
Intel said in its most recent earnings, which are some of the most disastrous published in years, that the company will get back on track in 2023 and aim for market leadership through 2025 and beyond. We described their entire product portfolio expected in the coming years and will take on both AMD and Apple in the server, laptop and desktop segments.
During the earnings call, Intel CEO Pat Gelsinger admitted that they have lost share and also the momentum they used to have, but that is changing now and the company can expect to stabilize in the current year.
“We lost share, we lost momentum. We think that stabilizes this year,” CEO 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 sure how Intel expects to stabilize so early. The factors are the massive inventory that amounts to $13.2 billion, or the equivalent of 151 days, still sitting there, along with the poor reception of Intel’s Sapphire Rapids Xeon processors, which were recently released to handle the EPYC portfolio of AMD.
The blue team expects this Sapphire Rapids Xeon processors will continue to power a variety of cloud and data center customers including the likes of Amazon, Microsoft, META and others. The DRAM market also hopes that will be the case, but other analysts have predicted that AMD’s EPYC processors will continue to eat away at server market share and may just hit or miss by 30% by the end of this year with more products launching soon in the current range such as Genoa-X, Bergamo and Siena.
“I don’t think Intel is in a position to start recovering its share yet.” Going from 1% to 13% is significant. That tells you there is now a viable second competitor 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 take on AMD,” said Lucas Keh, a semiconductor analyst at Third Bridge. “However, our experts say it’s 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 believe its plan is working,” said Glenn O’Donnell, an analyst at Forrester Research. “It is delivering new products and its production is being boosted by agreements from other chipmakers to use Intel’s manufacturing capacity.”
But there are also some analysts who predict that the plans implemented by CEO Pat Gelsinger and his team at Intel are working, and if this continues to be the case, we can expect a good result for Intel as well.
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