Intel officially joins fight with Nvidia and AMD, but results could be a long time coming

Intel Corp. pulled out all stops on Tuesday with the most important product launch in the history of its data center operations as the world’s largest chip maker faces tougher competition from its dominance.

On Tuesday, Intel INTC + 0.80% hosted an unusual launch product at Brooklyn Navy Yard, where it unveiled its Xeon chips for next-generation servers, a market that has controlled for years with customer support on stage As alphabet Inc. S GOOGL, + 0.27% + 0.14% -0.23% Amazon web services Google and Inc. AMZN, GOOG.

The official presentation of its new family of smart, anticipated by investors for months, comes after a launch on the same platform for a long time rival Advanced Micro Devices Inc. AMD, + 0.58% and a sudden surge specialist Graphic server Nvidia Corp.

NVDA + 1.42%, which has raised questions about Intel’s continued leadership. “This is the most competitive environment we’ve seen in a decade,” said analyst Stacy Rasgon of Bernstein Research.

“They try to show that they still have the leadership and they can still have a good deal,” Rasgon said of Intel’s launch. “In part, this is because there are so beaten competitors products, they want to have the opportunity to tell their story.” Do not miss: Intel license and AMD rumors finally should be dead

Intel had a market share of 99.7% in 2016 to the brain chips (CPU or CPU) for product servers, the kind of the most popular servers are sold around the world.

Revenues amount to approximately 16.5 trillion last year, according to Dean McCarron, senior analyst at Mercury Research. AMD was its only rival in this space, and basically had sold most of its market share, as it lacked new products in this thriving region until this year.

Investors especially hated the new Intel Tuesday with stocks kept rising, although Intel wanted to have sold more than 500,000 new Xeon scalable to large corporate customers, high-performance computing sites, cloud computing companies and vendors communication services.

This is still a blah race for Intel shares, which fell 1.3% last year, while Nvidia has tripled its value, AMD has gained more than 177% and the S & P 500 SPX -0.08 % Increased by 13.5%.

Cloud computing is clearly an important goal for these processors: AMD introduced MSFT Microsoft Corp., + 0.01% cloud computing Azure and Baidu Inc. BIDU, + 0.81% during the EPYC launch event their new chips , While Nvidia has sung business with Google, AWS and more.

But cloud customers are very fickle, says Enderle, senior analyst at Enderle Group. At least a quarter, the incoherent control of cloud providers was cited by slower growth in Intel’s data center business. Your loyalty gained through sweat can change easily.

Analysts also point out that the server market moves more slowly than the consumer market, and it will take time before AMD sales will take place and will not influence Intel’s dominant market share.

“Changes to the server occur very slowly at first, design and qualification cycles are long, so a new product on the market takes time – often several years – to bring volume,” said Mercury Research’s McCarron.

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