Timothy Green, The Motley FoolSat, Jul 5, 2025, 11:50 AM 4 min readIn This Article:Server sales are booming, largely thanks to artificial intelligence (AI) server demand.Intel isn't a major player in the AI accelerator market, but its server CPU business can benefit from strong server demand.The company will need to battle competition from AMD and Arm-based servers, but its product lineup is the best it's been in years.10 stocks we like better than Intel ›Invest in GoldDemand for artificial intelligence (AI) infrastructure is off the charts. Around the world, companies and countries are investing heavily in AI data centers, fearful of being left behind. While the jury is still out on how long this frantic pace of AI data center build-outs will last, there are no signs of it slowing down anytime soon.Intel (NASDAQ: INTC) has largely missed the AI boat. The company's attempts to break into the AI accelerator market fell flat, and its server CPU business has struggled recently as rival AMD stole market share. Manufacturing delays in the past and a culture of complacency planted the seeds of the current crisis.Image source: Getty Images.I wouldn't say that Intel has fully gotten its act together in the server CPU market, but the company has certainly made meaningful progress over the past few years. The server market is expected to grow rapidly over the next few years, and Intel is in a far better position today to reap the rewards.Global server sales topped $250 billion in 2024, according to IDC. With booming sales of AI servers in the first quarter, the forecast from IDC for 2025 now sits at $366 billion. By 2029, IDC sees global server sales nearing $600 billion. Much of this growth will be driven by x86 servers with AI accelerators, although other categories are also set to expand.Although the bulk of spending related to AI servers goes toward GPUs, CPUs are still a critical component. With global sales of accelerated x86 servers expected to nearly triple by 2029, AI servers represent a significant opportunity for Intel's server CPU business. The market for standard x86 servers will also expand, although not nearly as quickly.Intel fell way behind AMD in terms of performance, core count, and efficiency in the early 2020s. One problem was that Intel was stuck on its aging 14-nm process technology due to delays with its 10-nm process, and then it was stuck on its 10-nm process. Sapphire Rapids and Emerald Rapids, which both launched in 2023, both used versions of Intel's 10-nm process, while AMD was able to tap into more advanced process nodes from TSMC.Condizioni e Informativa sulla privacyPrivacy & Cookie SettingsMore InfoS&P 5006,279.35 +51.93 (+0.83%)Dow 3044,828.53 +344.11 (+0.77%)Nasdaq20,601.10 +207.97 (+1.02%)Russell 20002,249.04 +22.66 (+1.02%)VIX17.48 +1.10 (+6.72%)Gold3,346.50 +3.60 (+0.11%)PortafoglioEffettua l'accesso per consultare il tuo portafoglioAccediMaggiori rialziBMNR Bitmine Immersion Technologies, Inc. 135.00 +76.50 (+130.77%)RUN Sunrun Inc. 10.50 +1.51 (+16.80%)TRIP Tripadvisor, Inc. 17.50 +2.51 (+16.74%)DDOG Datadog, Inc. 155.15 +20.14 (+14.92%)SYM Symbotic Inc. 47.91 +5.71 (+13.53%)Maggiori ribassiLEN Lennar Corporation 110.12 -4.69 (-4.09%)LEN-B Lennar Corporation 105.62 -4.37 (-3.97%)ESGRP Enstar Group Limited 19.45 -0.79 (-3.91%)HOOD Robinhood Markets, Inc. 94.40 -3.58 (-3.65%)BG Bunge Global SA 78.44 -2.95 (-3.62%)I più scambiatiLCID Lucid Group, Inc. 2.1600 +0.1100 (+5.37%)NVDA NVIDIA Corporation 159.34 +2.09 (+1.33%)INTC Intel Corporation 22.49 +0.61 (+2.79%)F Ford Motor Company 11.81 +0.04 (+0.34%)TSLA Tesla, Inc. 315.35 -0.30 (-0.10%)Eventi relativi agli utiliTicker più popolariXRP-USD XRP USD 2.27 +0.05 (+2.03%)TSLA Tesla, Inc. 315.35 -0.30 (-0.10%)LKNCY Luckin Coffee Inc. 38.49 +0.50 (+1.32%)STZ Constellation Brands, Inc. 172.32 -1.55 (-0.89%)BONK-USD Bonk USD 0.00 +0.00 (+20.07%)Principali eventi economiciPowered by Money.com - Yahoo may earn commission from the links above.