Guo Mingyi: the server shipments of the supply chain to Microsoft may decline in 2023

[Guo Mingyi: supply chain server shipments to Microsoft may decline in 2023] April 25, well-known analyst Guo Mingyi believes that Intel demand for SapphireRapids is lower than expected, while Microsoft has significantly reduced SapphireRapids server orders due to weak demand in the server market, my latest survey shows that 1.Intel 's SapphireRapids is expected to start shipping in 2Q23 and investors expect this latest server chip to contribute significantly to Intel profits. But the supply chain has recently been notified that 2Q23's SapphireRapids chip order has been revised by about 50 per cent because of weak demand in the server market. 2.Microsoft, one of SapphireRapids's main CSP customers, has informed the supply chain to order about 50-70 per cent of 2H23 and subsequent SapphireRapids servers due to weak demand in the server market. In the server market, 3.Intel faces not only competition from AMD, but also competition from ARM chips. Microsoft expects that since 1H24 starts purchasing ARM server chips produced by Ampere, it will gradually reduce its dependence on x86 and be detrimental to Intel's server business.