Intel’s Network and Edge Business Struggles

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Intel’s network and edge group has seen significant growth in recent years, but sales plummeted by a third to less than $2.9 billion, resulting in a $487 million loss. Intel attributed this decline to customers reducing purchases to adjust to lower demand across product lines.

Competition from advanced silicon, like Nvidia’s GPUs, poses a threat to Intel’s edge business. Demand for GPUs has surged, driving Nvidia’s share price up 227% since the start of the year. Despite these setbacks, it’s unclear if Intel achieved its 40% market capture goal in 2022.

Nokia also faced difficulties when Intel missed delivery targets for 10-nanometer chips designed for their initial 5G products, temporarily disrupting their 5G strategy. Meanwhile, Intel’s relationship with Ericsson is expanding, with future plans to manufacture customized 5G chips using their next-generation processes.

Intel boasts a 99% share of virtual RAN deployments, however, the market for open and virtual RAN products has not taken off as quickly as expected. Dell’Oro predicts a 13% shrinkage in the RAN market in North America this year, impacting Ericsson and Nokia’s profitability.

The sources for this piece include an article in DataCenterKnowledge.

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