Intel CEO Pat Gelsinger hopes Chipzilla will recoup 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 don’t know how
Intel said in its most recent results, which are among the most disastrous they’ve released in years, that the company will get back on track in 2023 and on its way to market leadership by 2025 and beyond. of the. We have detailed their entire product portfolio expected in the coming years and will cover 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 once had, but that is changing now and the company can expect stabilize during the current year.
“We’ve lost share, we’ve lost momentum. We think it’s leveling off this year,” chief executive Pat Gelsinger told investors on a conference call.
via Reuters
While Pat thinks Intel is in good hands, Wall Street analysts and the market itself are unsure how Intel anticipates stabilizing so soon. The factors are the huge inventory which amounts to $13.2 billion or the equivalent of 151 days which is still there, as well as poor reception of Intel’s Sapphire Rapids Xeon processors which were recently launched for take on AMD’s EPYC portfolio.
The blue team predicts that Sapphire Rapids Xeon processors will continue to power various cloud and data center customers including Amazon, Microsoft, META and others. The DRAM market is also hoping this will be the case, but other analysts have predicted that AMD’s EPYC processors will continue to gobble up server market share and could just reach or exceed 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 begin to reclaim market share yet. Someone who jumps from 1% to 13% is significant. That tells you that there is now a viable second competitor in the market server processors, which has momentum and is gaining momentum,” Rau said.
“Intel had high hopes that Sapphire Rapids would give them a competitive edge against AMD,” said Lucas Keh, 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 time, exacerbated by the economy, but I think its plan is working,” said Forrester Research analyst Glenn O’Donnell. “It is delivering new products and its manufacturing is ramping up with deals from other chipmakers to use Intel’s manufacturing capacity.”
via Reuters
But some analysts are also 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.