The company has made notable progress with competitive products like Sapphire Rapids and Granite Rapids launched in 2023, which utilize evolving process technologies.

However, Intel faces challenges from AMD and the rising threat of Arm-based servers, which are projected to grow from a $32 billion market in 2024 to $103 billion by 2029.

To capitalize on the booming server market driven by AI demand, Intel must focus on maintaining its market share against AMD and ensure the timely delivery of new process technologies.

Despite previously struggling in the AI accelerator market and facing competition from AMD, Intel has made meaningful progress in recent years.

Although Intel missed the AI accelerator market, its server CPU business stands to benefit from the increasing demand for server infrastructure, as CPUs remain crucial components in AI servers.

Despite the competitive landscape, there remains ample opportunity for Intel to expand its market share in the evolving server market.

Ultimately, Intel's recovery in the CPU market will depend on the timely release of new technologies and its ability to retain market share against its competitors.

Upcoming products such as Clearwater Forest and Diamond Rapids, expected to launch in 2025 and 2026 respectively, will leverage Intel's new 18A process technology to enhance its competitiveness against AMD and Arm-based solutions.

The demand for artificial intelligence (AI) infrastructure is surging, prompting significant global investments in AI data centers as companies and countries strive to keep pace with technological advancements.

This growing demand has driven global server sales to exceed $250 billion in 2024, with projections indicating an increase to $366 billion in 2025 and nearly $600 billion by 2029.

Despite the majority of spending in the AI sector being directed towards GPUs, Intel's server CPU business is well-positioned to benefit from the anticipated growth in AI servers.

Intel's recent product advancements and the overall growth of the server market suggest that the company could emerge as a significant player in the AI server boom, provided it successfully executes its product roadmap.