Intel CEO, Pat Gelsinger, is hopeful that Chipzilla will recover its losing market share hold 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 their most recent earnings, which are some of the most disastrous they have posted in years, that the company will be getting back on track in 2023 & going towards market leadership by 2025 and beyond. We detailed their entire product portfolio that is expected in the coming years and will tackle both AMD and Apple in the server, laptop, and desktop segments.
During the earnings call, Intel’s CEO, Pat Gelsinger, admitted that they have lost share and also the momentum that they once had but that changes now and the company can expect stabilization in the current year.
“We lost share, we lost momentum. We think that stabilizes this year,” Chief Executive Pat Gelsinger told investors on a conference call.
While Pat believes that Intel is in good hands, Wall Street analysts and the market itself aren’t really sure how Intel is anticipating stabilization so early. The factors are the huge inventory that amounts to $13.2 Billion or 151 days equivalent which is still sitting there along with poor reception of Intel’s Sapphire Rapids Xeon CPUs which were recently launched to tackle AMD’s EPYC portfolio.
The blue team is anticipating that Sapphire Rapids Xeon CPUs will go on to power various cloud & data center customers including the likes of Amazon, Microsoft, META & others. The DRAM market is also hopeful that it would 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 breach 30% by the end of this year with more products launching soon in the current lineup such as Genoa-X, Bergamo, and Siena.
“I don’t think Intel is in a position yet to start recovering share. Someone going from 1% to 13% is significant. It tells you that now there’s a viable second competitor in the server processor market, who has momentum and is gaining momentum,” said Rau.
“Intel had high hopes that Sapphire Rapids would enable them to take the fight to AMD,” said Lucas Keh, semiconductors analyst at Third Bridge. “However, our experts say that it has been a disappointment so far because of Intel’s continuous 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 on new products and its manufacturing is ramping up with 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 that continues to be the case, we can expect a good outcome for Intel too.