Like its competitor AMD, Intel is in a quandary on the server CPU market this year: In AI fever, customers are spending less on classic CPUs. Representatives of Intel assume that the company’s position in the server segment will stabilize only next year, and they will switch to growth even later.
Relevant considerations for Technology Conference Citi Shared with the audience, Intel CFO David Zinsner (Davis Zinsner). In his opinion, the difficulties with which the company was confronted in the server area have not yet been fully overcome. The often-cited Sapphire Rapids Xeon processors are good, explains Zinsner, but they don’t cover all customer needs in terms of total cost of ownership. For this reason, the chief financial officer added, Intel will prepare to announce new products. Emerald Rapids processors are slated to launch later this year, which will be “a step in the right direction,” as Zinsner puts it.
At the same time, only next year will the release of the Sierra Forest and Granite Rapids processors made with Intel 3 technology mark a turning point in terms of product performance. They will allow Intel to really strengthen its position in the server market in the future, concluded the company’s CFO. The schedule for the release of these processors is somewhat accelerated compared to the original, and the company’s management is quite satisfied with the pace of development of Intel 3-process technology.
According to Zinsner, 2024 will be a time for Intel to stabilize its market position in the server segment. In 2025, Granite Rapids processors will be in widespread use and this, combined with the later appearance of Clearwater Forrest processors, will already suggest an increase in the company’s market share, as this is the case at this point in time “will achieve a real benefit in terms of product performance”as explained by the finance director.
In 2024, along with the expansion of new CPUs, Intel will drive sales of its Gaudi computing accelerators, and in 2025 Falcon Shores accelerators will be launched. The software ecosystem supported by Intel aims to bring out the advantages of the brand’s GPUs in the server segment. The company will actively increase the volume of deliveries of accelerators of the Gaudi family and intends to release accelerators of the Gaudi3 generation “in a reasonable time”. Such accelerators won’t bring tangible revenue to the company until next year, as it takes customers “many months” to customize the accelerators for their specific types of computing workloads.