Sapphire Rapids Based New Chips Aim To Regain Lost Market Share, Intel Executive Say

  • Intel Corp INTC launched its 4th Gen Intel Xeon Scalable processors (code-named Sapphire Rapids), the Intel Xeon CPU Max Series (code-named Sapphire Rapids HBM), and the Intel Data Center GPU Max Series (code-named Ponte Vecchio).
  • Intel delivered a leap in data center performance, efficiency, security, and new capabilities for AI, the cloud, the network and edge, and the most powerful supercomputers.
  • Xeon processors based on the new Sapphire Rapids design made their way into cloud-computing systems run by Alphabet Inc's GOOG GOOGL Google and Amazon.com Inc's AMZN Amazon Web Services
  • Also Read: Intel Restructures Graphics Chip Division To Win Market Share From Nvidia, AMD
  • The debut of Sapphire Rapids is the first step in rebuilding confidence that Intel is once again leading the computer industry forward, Sandra Rivera, the head of Intel's Data Center & Artificial Intelligence division, told Bloomberg.
  • The debut with its delayed server design was the key to regaining control of one of the most lucrative markets in computing. 
  • Intel's Xeon range once held more than 99% of the market in machines needed to make sense of the growing flood of data created by smartphones and the internet. 
  • Rival Advanced Micro Devices, Inc AMD and home-grown efforts by some of Intel's largest customers have eaten into that dominant position, Bloomberg noted.
  • Intel first announced Sapphire Rapids in 2019 and postponed its availability at least twice. 
  • Third-quarter sales for Intel's data-center division dropped 27% to $4.2 billion. AMD's data center unit reported revenue growth of 45% in the same period. Still, Intel retained a formidable 83% server market share, according to Mercury Research.
  • Nvidia Corp NVDA chose the new Intel design as the processor for its DGX artificial intelligence acceleration server systems, moving away from the AMD chips.
  • Hans Mosesmann at Rosenblatt and Stacy Rasgon of Bernstein said Intel's competitive position would remain challenging this year. CEO Pat Gelsinger has said server competition will be a "knife fight" for a while. 
  • For Rivera, Sapphire Rapids and its successors are the beginning of reversing any perception that Intel is in permanent decline. 
  • Price Action: INTC shares traded higher by 0.15% at $29.49 on the last check Wednesday.
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