Intel Sapphire Rapids Sales Forecasted to Slow Down, Microsoft Cuts Orders

[AleksandarK]

According to Ming-Chi Kuo, an industry analyst known for making accurate predictions about Apple, we have some new information regarding Intel's Sapphire Rapids Xeon processors. As Kuo notes, Intel's major Cloud Service Provider (CSP) client, Microsoft, has notified the supply chain that the company is cutting orders of Sapphire Rapids Xeons by 50-70% in the second half of 2023. Interestingly, Intel's supply chain has notified the company to cut chip orders by around 50% amidst weak server demand. This comes straight after Intel's plans to start shipping Sapphire Rapids processors in the second quarter of 2023 and deliver the highly anticipated lineup to customers.

Additionally, Kuo has stated that Intel isn't only competing for clients with AMD but also with Arm-based CPUs. Microsoft also plans to start buying Arm-based server processors made by Ampere Computing in the first half of 2024. This will reduce Microsoft's dependence on x86 architecture and induce higher competition in the market, especially if other CSPs follow.



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[HBSound]

Please send two my way!

 

[Wirko]

My market prediction: Intel won't be able to sell more than five gigawatts of Sapphire Rapids.

 

[kondamin]

I doubt it’s got much to do with intel and it’s microsoft that is seeing a significant drop in demand on their side

 

[AnotherReader]

I doubt it’s got much to do with intel and it’s microsoft that is seeing a significant drop in demand on their side

Highly unlikely. Azure, unlike Intel, is still seeing double digit growth.