Intel CEO Pat Gelsinger is hoping Chipzilla will regain its market share loss 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 said in its latest earnings, which are among the most disastrous in years, that the company will get back on track in 2023 and achieve market leadership by 2025 and beyond. We’ve detailed their entire product portfolio, which is expected in the coming years and will address both AMD and Apple in the server, laptop, and desktop segments.
During the earnings call, Intel’s CEO, Pat Gelsinger, admitted that they lost shares and the momentum they once had, but that’s changing and the company can expect to stabilize in the current year.
“We lost shares, we lost momentum. We believe that will stabilize this year,” Chief Executive Pat Gelsinger told investors on a conference call.
via Portal
While Pat believes Intel is in good hands, Wall Street analysts and the market itself are unsure how Intel can expect to stabilize so early. The factors are the huge inventories totaling $13.2 billion or 151 days equivalent still sitting there along with the poor reception of Intel’s Sapphire Rapids Xeon CPUs recently launched, to tackle AMD’s EPYC portfolio.
AMD has started to take over Intel at the market share cap. (Image credit: Portal)
The blue team anticipates that Sapphire Rapids Xeon CPUs will continue to power various 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 eat up server market share and could only reach or break 30% by the end of this year, with more products soon to hit the market Market will come current lineup like Genoa-X, Bergamo and Siena.
“I don’t think Intel is in a position to win back its stake anymore. Someone who goes from 1% to 13% is significant. It tells you there’s now a viable second competitor in the server processor market that’s gaining momentum and gaining momentum,” Rau said.
“Intel had high hopes that Sapphire Rapids would allow them to take the fight to AMD,” said Lucas Keh, semiconductor analyst at Third Bridge. “However, our experts say it’s been a disappointment so far due to Intel’s constant inconsistency in delivery.”
“Intel’s turnaround will take time, made worse by the economy, but I believe his plan is on track,” said Glenn O’Donnell, an analyst at Forrester Research. “It’s shipping new products and its manufacturing is being ramped up through agreements with other chipmakers to use Intel’s manufacturing capacity.”
via Portal
But there are also some analysts who are predicting that the plans being implemented by CEO Pat Gelsinger and his team at Intel are working out, and if that continues, we can expect good results for Intel as well.
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