In recent years, as the growth of the PC market has stagnated, Intel, the world's second-largest chip maker in terms of revenue, has begun to rely on data center services serving mobile and network applications to grow. However, due to its data center business Intel's share price fell 8.5% on July 27th, meeting the target of Wall Street growth.
Analysts expect AMD to launch a 7-nanometer chip next year, which will help the company grab Intel's market share.
The current technology of Intel chips is based on 14 nanometers, which means that the speed is slower. Analysts said that by 2019, AMD seems to be leading.
In addition, Intel will not launch its own 10nm PC chip until the end of 2019, and the chip for servers will not be available until 2020.
Stacy Rasgon, an analyst at investment bank Bernstein, said that Intel, based in Santa Clara, Calif., has been boasting for years that its factories have the ability to make cutting-edge chips, but with competitors. With a more advanced factory, Intel 'completely lost control of market leadership'. The analyst gave Intel stock a 'market underperform'.
On Wednesday, local data center director Navin Senoy will announce Intel's plans to Wall Street analysts. Shenoy is a 23-year veteran of Intel.
His forthcoming announcement will include that its data center market will grow in size and growth faster than it had previously expected, and will disclose for the first time Intel's revenue from the fast-growing area of artificial intelligence.
Although 10 nanometer chips are expected to bring Intel a hand, such chips will not be shipped in large quantities until 2020. Shenoy told Reuters that Intel believes that if the company focuses on improving existing chips, its profit growth may be More than the overall market growth.
Shenoy took over as the head of data center business last summer. After the announcement of Intel's second-quarter earnings, its share price plummeted at the end of July. He expressed surprise. 'Not long ago, people still asked me, the data center has two The number of growth, ' he said, the business grew by 26% in the fourth quarter of last year.
The success of Intel's plan will depend on whether the company has the ability to 'stitch' its CPU with its memory chips, its semi-custom computing chips and its software products. The company also plans to chip Adjusted to make it more competitive with NVI's artificial intelligence products. Shenoy said Intel will compete with competitors' systems in terms of cost and computing power.
Intel's plan also includes its new memory chip technology, Optane, which will match its processors next year, and will gain some capabilities that competitors can't. Over the past decade, Intel has been developing the technology.
Shenoy said, 'We are very excited, we are hungry, we are ready to participate in the competition, we are ready to catch up.'
However, analysts said that the market widely expects AMD to still grab market share in the coming year, mainly due to its more advanced chip products with improved efficiency.
Dan Hutcheson, chief executive of market research firm VLSI Research, said that although Intel is lagging behind in the competition for chip manufacturing process technology, its processor power is stronger than data, and from now until 2020 It is unlikely to lose its dominance in the data center market.
'This is not to say that they are behind two generations of technology,' said Hutcheson. 'They are just behind the half-generation technology.'