Yesterday at the Evercore ISI TMT conference, Intel's CEO, Pat Gelsinger, stated that Chipzilla is anticipating further market share losses to AMD through 2023. During the talk, Intel's CEO talked about how the dramatic changes in the PC market have not only affected their business but also the businesses of other companies in the tech market. He goes on to say that their own execution of products resulted in adverse earnings during the last quarter but the majority of the change in outlook was driven by market conditions.
Talking about how the company sees AMD moving forward, Pat says that the competition has done a good job and while Intel is still on a process node/technology deficit (10nm vs 5nm), the company is getting there with their future products with Emerald Rapids in 2023 and Granite Rapids / Sierra Forest in 2024. The CEO goes on to mention the advantages of Sapphire Rapids & how it is so good at AI. Sapphire Rapids is said to offer better performance and power than the AMD alternative but not in a significant way and Pat's goal is to bring out products fast that are not just better but more than better compared to the competition.
However, rolling out products takes time and Intel knows that they will be losing market share to AMD for a good while and throughout 2023 and even 2024. This is because the competition just has much more momentum in almost all segments. As such, Pat believes that Intel will start to regain its market share by 2025-2026. Till then, they'll bottom out and start trying to keep up with the TAM.
One interesting thing that Pat has mentioned is that Intel is fundamentally rebuilding its execution machine by putting all of its projects into a consistent development methodology under a new PLC model known as Palladius. This will play a key role in the next generation of products but Pat says that Sapphire Rapids' design was started pre-Palladius, almost 5 years ago. The products that are already in the design phase will continue to get better compared to their A0 tapeouts, products like Arrow Lake & Lunar Lake for clients and Emerald Rapids & Granite Rapids for servers but it is the 2025 & 2026 product lineup that will truly take benefit from Intel's new design methodologies.
Just last month, AMD achieved its biggest market share milestone with EPYC surpassing the historical share of Opteron and crunching away more share from Intel in the server segment. Surely, AMD has come a long way and with solid execution and product launches year after year, they have continued to see a major gain in the PC market.
Intel could definitely learn from this & it looks like they are by acknowledging the wins and leadership position of their rival. We definitely want to see more competition in the CPU segment and Intel has a long way to go to catch up to the red team but hopefully, if they execute their product lineups properly, they will come close to the goal of being the market leader once again.
By Hassan Mujtaba, source https://wccftech.com/intel-anticipates-further-market-share-loses-to-amd-through-2023-aims-to-re-establish-growth-by-2025/
