According to analysts, Intel Corp’s recent focus on developing chips to match increased demand will allow Advanced Micro Devices Inc, its main competitor in the server and PC industry, to gain a stronger footing in the area.
From 2023 to 2026, Intel anticipates sales from its PC segment to increase in the low to mid-single digits, and revenue from its data center and AI division to grow in the high teens, according to the company, which plans major expenditures in chip technology over the next four years.
On Friday, the company’s stock dropped by around 6 per cent while AMD’s stock dropped by 1 per cent.
When AMD concluded its $50 billion Xilinx deal earlier this week, its market cap momentarily surpassed Intel’s. AMD is now about $1 billion behind Intel, which has a market cap of $182 billion, and both companies are considerably behind Nvidia, which has a market size of $585 billion.
In 2018, AMD had a market share of less than 5 per cent in servers, but today has 15 per cent. According to WestPark Capital analyst Ruben Roy, this might reach 25 per cent. AMD’s market share in PCs, he predicts, will rise to the upper 20s from its present 18 per cent to 20 per cent level.
“We think share gains will continue as Intel tries to catch up on manufacturing process tech.”
Wall Street, on the other hand, is less enthusiastic about Intel’s current chip ambitions, which analysts say lack “credibility” in the face of fierce competition and involve modest gross margin expansion and aggressive expenditure. find out more
According to Harsh Kumar of Piper Sandler, Intel’s ambitious plan poses no immediate danger to Nvidia and AMD.
“Intel only plans to find its normal cadence but is not really expected to take any meaningful share.”
Intel, once the global leader in semiconductors, lost its position to Samsung Electronics in 2021 for the first time since 2018, according to Gartner statistics, while AMD soared from 14th to tenth place.
(Adapted from EWHBL.com)