Intel Delays Its Monster Server CPU

Core Insights - Intel has made significant progress in its server CPU business, particularly with the launch of new products in 2024, but it continues to face competition from AMD and challenges in the market [1][2][3] Product Developments - In 2024, Intel introduced two new families of server CPUs: Sierra Forest, designed for cloud workloads with up to 144 cores, and Granite Rapids, aimed at compute-intensive applications with a maximum of 128 cores [2] - Both Sierra Forest and Granite Rapids are built on the Intel 3 process, which represents a substantial improvement over the older Intel 7 process, although it still lags behind TSMC's advanced processes [3] Future Products - Clearwater Forest, the successor to Sierra Forest, has been delayed to the first half of 2026 due to complications in packaging requirements, but it is expected to be built on the Intel 18A process, which could bring Intel back to parity with TSMC [5][7] - Clearwater Forest is anticipated to feature innovations such as a new transistor design and "Local Cache" for improved efficiency and performance [7] Market Position and Strategy - Intel is focusing on stabilizing its market share with Sierra Forest and Granite Rapids while addressing competitive pressures from AMD and the shift towards AI accelerators in data centers [6][9] - The data center segment has seen a decline, with revenue dropping 3% year-over-year to $3.4 billion and operating profit falling to $233 million [9] Pricing Strategy - To combat market share losses, Intel has reduced the list prices of Granite Rapids significantly, enhancing its value proposition [8][10] - The company aims to leverage its solid product lineup and attractive pricing to halt market share losses in the data center segment [10][11]