Intel Could Still Be a Big Winner in the AI Server Boom

Group 1: AI Infrastructure Demand - Demand for AI infrastructure is surging globally, with significant investments in AI data centers as companies and countries aim to avoid falling behind [1] - The rapid pace of AI data center build-outs shows no signs of slowing down in the near future [1] Group 2: Intel's Position in the Market - Intel has struggled to enter the AI accelerator market and has faced challenges in its server CPU business due to market share losses to AMD [2] - Despite past difficulties, Intel has made meaningful progress in the server CPU market and is better positioned to benefit from expected growth [4] Group 3: Server Sales Growth - Global server sales reached over $250 billion in 2024, with forecasts predicting growth to $366 billion in 2025 and nearly $600 billion by 2029 [5] - The growth will be primarily driven by x86 servers with AI accelerators, although other server categories will also see expansion [5][6] Group 4: Intel's Technological Advancements - Intel has improved its performance and efficiency with the launch of Granite Rapids and Sierra Forest, utilizing more advanced manufacturing processes [8][9] - Upcoming products like Clearwater Forest and Diamond Rapids are expected to further close the manufacturing gap with AMD [9] Group 5: Competitive Landscape - Arm-based servers are emerging as a significant threat, with IDC projecting their market to grow from $32 billion in 2024 to $103 billion by 2029 [10] - Despite the competition from Arm, the overall server market will still provide ample opportunity for Intel to grow its server CPU business [11]