Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen OC_Formula for the clue delivery! CTOnews.com Sept. 11 news, at the Evercore ISI TMT summit, Intel admitted that it has the risk of continuing to lose market share. In the latest report, Intel CEO Pat Gelsinger said he believes AMD will continue to seize market share that originally belongs to Intel, and it will be difficult to reverse this trend in the short term.

During the conversation, Intel CEO talked about how the dramatic changes in the PC market have affected not only their business, but also those of other companies in the technology market. He added that the execution of their own products led to negative earnings in the last quarter, but that most of the changes in the outlook were driven by market conditions.

Since then, I think things will be just as we expected, or even worse. So we gave an expectation on the conference call that Intel had never done before. We'll always give you a number. This time, we gave a range, taking into account the uncertainty of the overall economy at that time. I said we have a low-end trend in the current quarter and throughout the year, right?

Overall, the situation is worse than we predicted earlier this year, but it is still within the quarterly and annual range. But life out there is really hard. Many vehicle factories are changing their views and prospects, channel inventory adjustment, there are still many economic problems to be solved.

As we said in the earnings call, our shipments are now lower than the consumption rate in the end market, right? What we are seeing is a backlog of inventory. I would say that it does give us the prospect of growth in the fourth quarter. We said that the second quarter and the third quarter are the bottom. We still believe that there will be growth in the fourth quarter as some inventory consumption begins to reverse. Overall, the fourth quarter was a better quarter. So all this adds up, and we can say that we are within this range, but a little milder than what we said at the beginning or in the conference call in the second quarter.

Basically, all the other announcements are confirmation of what we have said in the industry so far. With a few exceptions, there is a very unique proprietary position on short nodes and technology, and this is the only firm point of view of everything else.

When he talked about how the company sees the development of AMD, he said that competitors have done a good job, and although Intel is still at a process node / technology disadvantage (10nm versus 5nm), the company is catching up with future products such as Emerald Rapids in 2023 and Granite Rapids / Sierra Forest in 2024. He mentioned that the advantage of Sapphire Rapids lies in artificial intelligence. It is said that the performance and power of Sapphire Rapids is better than that of AMD competitors, but it is not obvious that his goal is to launch products quickly, not only better but also better than their competitors.

However, it will take time to launch products, and Intel knows that they will continue to lose market share for a long time and throughout 2023 or even 2024. This is because AMD is putting more pressure on almost all areas. As a result, he expects Intel not to be competitive until 2025 at the earliest, and there is no hope of reversing the declining share trend until 2026.

CTOnews.com learned that AMD has captured Intel's share of the server market for 13 consecutive quarters and now has a 20.2% share of the server market. That share is likely to grow by another 5% or more in the future, according to Intel's calculations. Returning to a strong market will have to wait until 2024 when Sierra Forest processors are available.

Finally, Pat Gelsinger stressed that Intel will continue to withdraw from businesses that it believes have no room for growth, such as former mobile modem chips and arrogance. Intel is also appointing new leadership groups and preparing for a major corporate restructuring, placing all its projects in a consistent development approach under a new PLC model called Palladius.

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