At the Evercore ISI TMT conference, Intel announced that they would continue to lose market share, with a possible bounce-back in the coming years. Intel’s CEO Pat Gelsinger announced that he expects the company to continue to lose its market share to AMD and the competition has “too much momentum” going for it. When it comes to AMD’s Ryzen and EPYC processor they continue to deliver impressive power and efficiency numbers, which drives customers towards the company. Intel does expect to have a competing product in their data center business with Sapphire Rapids Xeon processors, set to arrive in 2023. Pat Gelsinger noted, “Competition just has too much momentum, and we haven’t executed well enough. So we expect that bottoming. The business will be growing, but we do expect that there continues to be some share losses. We’re not keeping up with the overall TAM growth until we get later into ’25 and ’26 when we start regaining share, material share gains.”
Intel is targeting 2025 and 2026 for creating a bounce-back. “Now, obviously, in 2024, we think we’re competitive. 2025, we think we’re back to unquestioned leadership with our transistors and process technology,” noted CEO Gelsinger.
Pat Gelsinger also made note that the company will continue to exit more businesses where it doesn’t thrive. We saw this with Optane memory and we could see Intel pull out of other markets that don’t really align with the leadership’s vision. It will be interesting to see what comes out of this as the CEO has appointed a new leadership group and performed major structure reforms.
Via Tom’s Hardware