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“We lost share, we lost momentum. We think it will stabilize this year”




Intel CEO Pat Gelsinger hopes Chipzilla will regain its losing 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 latest earnings, one of its most disastrous in years, that the company will get back on track in 2023 and move toward market leadership by 2025 and beyond. We detailed their entire product portfolio that is expected in the coming years and will take on 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 stabilization in the current year.

“We lost share, we lost momentum. We think it̵[ads1]7;s stabilizing this year,” CEO Pat Gelsinger told investors on a conference call.

via Reuters

While Pat believes Intel is in good hands, Wall Street analysts and the market itself aren’t quite sure how Intel expects to stabilize so early. The factors are the huge inventory amounting to $13.2 billion or the equivalent of 151 days still sitting there along with the poor reception of Intel’s Sapphire Rapids Xeon CPUs which were recently launched to take on AMD’s EPYC portfolio.

AMD has begun to take up Intel in market share. (Image credit: Reuters)

The blue team expects Sapphire Rapid’s Xeon CPUs to continue to power various cloud and data center customers, including Amazon, Microsoft, META and others. The DRAM market is also hopeful that will be the case, but other analysts have predicted that AMD’s EPYC CPUs will continue to devour server market share and may only reach or break 30% by the end of this year with more products launching soon in the current lineup as Genoa-X, Bergamo and Siena.

“I don’t think Intel is in a position yet to start regaining share. Someone going from 1% to 13% is significant. It tells you that there is now a viable second competitor in the server processor market, which has momentum and is gaining momentum, ” said Rau.

“Intel had high hopes that Sapphire Rapids would enable them to take on AMD,” said Lucas Keh, semiconductor analyst at Third Bridge. “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, analyst at Forrester Research. “It delivers on new products and production increases with agreements from other chip manufacturers to use Intel’s production capacity.”

via Reuters

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 result for Intel as well.

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