Intel CEO expects to lose more market share in 2023

According to the latest data provided by research and analysis company Mercury Research, AMD’s overall market share of x86 processors in the second quarter of 2022 has exceeded the 30% mark, reaching 31.4%, an increase of 3.7% compared to the previous quarter and an increase of 8.9% compared to the same period last year, setting a new record again. AMD’s growth was mainly driven by the mobile processor and server processor markets, both of which achieved record market share.

According to TomsHardware, Intel CEO Pat Gelsinger spoke at the Evercore ISI TMT conference and expects to continue losing data center market share in 2023 and even into 2024, with the goal of starting to experience substantial market share gains between 2025 and 2026. Intel may abandon other businesses, like the recent end of the Optane business, and need to focus resources more on core products.

Image: Intel

Pat Gelsinger conceded that rivals had a lot of momentum and Intel wasn’t executing well enough. Given the current uncertainty in the broader economy, it’s possible that things have deteriorated a bit more than Intel expected earlier this year. Intel has delayed the release of Sapphire Rapids several times, and the latest plan is to not ship it until next year.

While Intel claims that Sapphire Rapids outperforms rival products in some ways and wins in individual benchmarks, it’s clearly not enough to slow AMD’s development. At present, AMD’s market share in server processors has increased for 13 consecutive quarters, reaching 13.9%. If calculated by sales amount, AMD’s revenue share increased by 11.3 percentage points year-on-year to 22.9%.

Since Pat Gelsinger took over as CEO, he announced the IDM 2.0 strategy, which has been promoting Intel’s accelerated transformation, however, it seems to be more difficult than expected to completely complete the reconstruction and reverse the decline, and it may take several years to truly recover.