Intel CEO Pat Gelsinger, speaking at the Evercore ISI TMT conference yesterday, said the company expects the company to continue to lose data center market share through at least 2023 and begin to recover in 2025 and 2026. I was. Gelsinger also said the company is likely to exit other businesses as well. , continues to narrow its focus on its core competencies, just as it recently began to withdraw from Optane memory.
Intel recently delayed the launch of Sapphire Rapids again, with the chip expected to arrive in 2023. Gelsinger said the new chips are “better than AMD’s alternatives” in terms of power and performance and will beat some benchmarks, but the advantage is not. As a result, Intel’s data center business will not grow as fast as the market, and the company will continue to lose market share.
“We expect to grow each year as the overall data center business moves forward. Like we said, Q2, Q3 [is] bottom. But I think we’re still losing share until at least next year,” he said.
“There’s too much momentum in the competition and we’re not doing enough, so we expect it to bottom out. We expect the business to grow, but we still expect to lose some share. Share. “Overall TAM growth, material share increases until we begin to regain 2025 and 2026,” Gelsinger added. Gelsinger clarifies that the company won’t start regaining market share until 2025.
“Of course, we believe we will be competitive in 2024. In 2025, we believe we will return to unquestionable leadership in transistor and process technology,” said Gelsinger.
AMD has already taken data center market share from Intel for 13 consecutive quarters, reaching 20.2% of the market, and Gelsinger’s comments point to at least another five quarters of share loss, possibly more.
Gelsinger pointed out that the company’s Sierra Forest processor is a key innovation that will help it address Arm, another chip architecture that is steadily sucking up market share. Sierra Forest Xeon processors feature high core counts with efficiency cores optimized to provide maximum power efficiency and performance density.
“Well, when we offer the Forest product line, we offer power performance leadership for all Arm alternatives as well. So now you go to your cloud service provider and you says, Should we use a big software lift for the ARM architecture instead of continuing with the x86 family?” said Gelsinger.
|AMD vs. Intel Roadmap||2022||2023||2024|
|Intel P Core||–||Sapphire Rapids / Emerald Rapids – Inter 7||Granite Torrent – Intel 3|
|AMD P-core||Milano-X – 7nm | Genova – 5nm – 96 cores||?||?|
|Intel E Core||—||—||Sierra Forest – Intel 3|
|AMD E-core||—||Bergamo – 5nm – 128 cores||?|
Intel’s Sierra Forest processor, which the company designed at the request of its biggest customer, looks promising. However, Sierra Forest does not expect him to arrive until 2024.
However, AMD’s 5nm Bergamo chips will feature 128 simplified ‘Zen 4C’ cores in a similar density-improved arrangement to serve the same market segment, and will arrive a year earlier in 2023. increase.
long way to go
It’s clear that the next few years will be difficult as Intel works toward a restructuring, but Gelsinger pointed to a change in leadership that will help accelerate the turnaround.
“70% of our leaders, minus one, are new to the company or new to the role they are in. So it was a pretty dramatic rebuild of the leadership team. ’” Gelsinger pointed out. He also announced the promotion of Schlomit Weiss to Senior Vice President and Co-General Manager of the Design Engineering Group.
Gelsinger will also continue to focus on its core competency of logic chips. This means he remains open to exiting more businesses, such as Intel’s recent decision to scale back its Optane business.
“Obviously Optane. We’re going to close the nasty door, and we’re going to move away from the memory business and perfect our business strategy around logic,” Gelsinger said. “You know, as we continue to prune and become more focused, there are a few more that are likely to end.”