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]

Fast forward to today, and Intel's dominance has clearly deteriorated. While Intel remains the market-share leader, as of mid-2024, its share of the desktop CPU market had fallen below 80%, and its share of the server CPU market was around 75%. AMD now has great products available in both markets, putting pressure on Intel's core business. Intel's manufacturing technology fell woefully behind TSMC, which AMD uses to make its chips. Compounding Intel's problems are a weak PC market coming out of the pandemic ...