Intel's Granite Rapids Could Drive a Major Rebound in Its Data Center Business

Core Insights - Intel's data center business has faced significant challenges, with revenue dropping from $23.5 billion in 2019 to $15.5 billion in 2023, resulting in an operating loss of $530 million [1] - AMD has gained substantial market share, with its x86 server CPU market share increasing from 2.9% five years ago to 23.6% in Q1 2024, significantly impacting Intel's pricing power [2] - Intel's recent launch of Granite Rapids server CPUs aims to regain competitiveness against AMD, featuring a maximum core count of 128 and improved performance [3] Revenue and Market Share - Intel's data center segment revenue decreased from $23.5 billion in 2019 to $15.5 billion in 2023, with a notable operating loss of $530 million [1] - AMD's revenue share in the x86 server CPU market reached 33% in Q1 2024, indicating that Intel has had to reduce prices to maintain market share [2] Product Development - The Granite Rapids CPU lineup is expected to close the performance gap with AMD, utilizing the new Intel 3 manufacturing process and offering significant efficiency gains [3] - The flagship Xeon 6980P is priced at $17,800, higher than AMD's EPYC Genoa 9654 priced at $11,805, indicating Intel's strategy to charge more for competitive products [4] Future Outlook - While 2024 may be challenging for Intel's data center segment, the introduction of Granite Rapids is anticipated to improve profitability and market position in 2025 and beyond [5]