Intel’s appointment of semiconductor veteran Lip-Bu Tan as CEO marks a critical moment for the company and its enterprise customers.
With rising competition from AMD, Arm-based chips, and RISC-V alternatives, Intel faces mounting pressure to defend its x86 dominance.
While many enterprises still depend on Intel for data center workloads, AI acceleration, and PC deployments, the landscape is shifting. AMD continues to erode Intel’s x86 market share, Arm is expanding in data centers, and Nvidia has surged ahead in AI.
These challenges have taken a toll. Intel’s stock dropped 60% in 2024, and in November, it was removed from the Dow Jones Industrial Average in favor of Nvidia. A month later, CEO Pat Gelsinger stepped down as the board sought a leadership reset.
For enterprise IT leaders, Tan’s strategy will determine whether x86 remains a reliable investment or if alternative architectures gain ground. His leadership will be key to Intel’s ability to compete in a rapidly evolving enterprise market.
Key concerns regarding x86
Enterprise IT buyers are concerned about how Tan’s leadership will affect the long-term viability of x86-based software and infrastructure.
Arm-based processors are gaining traction in data centers, with companies like Amazon Web Services and Microsoft developing their own Arm-based chips. China’s promotion of RISC-V as an alternative architecture also adds to the competitive pressure on x86.
Despite these challenges, analysts remain optimistic about x86’s position in enterprise IT, citing its deep ecosystem, software compatibility, and continued dominance in traditional workloads.
“We do not see the appointment of the new CEO changing the impact of enterprise investments in x86 in the enterprise,” said Raymond Paquet, distinguished VP analyst at Gartner. “On the enterprise PC side, x86 is still the dominant share of the market, and Intel has significant brand loyalty.” But, he said, “In the enterprise data center, there have been more incursions by competitors into the Intel installed base.”
According to Danish Faruqui, CEO of Fab Economics, Tan’s approach would align with Intel’s ongoing strategy to strengthen the x86 ecosystem alongside industry partners.
“Intel’s revenue is predicated on x86 product portfolio and hence investing and supporting x86 ecosystem remains a core competency aligned strategy,” Faruqui said. “Intel and AMD will continue to harvest x86 product market, feeding the enterprise investments in x86-based software and infrastructure.”
Beyond x86 to AI
For enterprises, the key question is not just whether x86 will disappear, but how Intel will adapt it for an AI-driven world.
“If Tan commits to reinventing x86 with power-efficient designs and AI acceleration, it could extend its relevance well into the next decade,” said Abhishek Singh, partner at Everest Group. “Companies that have built their entire IT stacks on x86 — spanning enterprise software, cloud workloads, and data center architectures — could see Intel return to form with more competitive processors.”
However, another possibility is that Tan may shift Intel’s focus beyond x86, prioritizing AI accelerators and modular compute architectures instead.
“This would be a more profound shift, signaling that Intel is hedging its bets and preparing for a future where enterprises mix and match compute architectures rather than defaulting to x86,” Singh said. “The most realistic outcome lies in the middle. Intel will likely modernize x86 with AI-first capabilities, making it more efficient for AI workloads, while also ramping up investments in accelerators and alternative compute architectures.”
Manish Rawat, semiconductor analyst at TechInsights, echoed this view, highlighting that Tan’s background suggests a focus on strategic acquisitions and partnerships with AI and cloud startups to foster an integrated ecosystem. These moves would allow Intel to expand beyond traditional silicon into end-to-end enterprise solutions.
Such a strategy would allow enterprises to maintain x86 investments in the short- to mid-term while planning for longer-term transitions.
Discrete GPUs and AI acceleration
Under Tan, Intel is expected to accelerate its shift toward processor-integrated AI accelerators, focusing on inferencing rather than training. This approach will aim to compete with AMD while avoiding direct confrontation with Nvidia, according to Faruqui.
Intel’s discrete GPU ambitions — especially in enterprise AI — have often appeared reactive rather than part of a clear strategic vision. The company entered the market late, facing Nvidia’s dominant CUDA ecosystem and AMD’s aggressive push into AI GPUs.
“Tan’s background suggests he is unlikely to double down on discrete GPUs at all costs,” Singh said. “He understands that the real AI war is not just about GPUs, but about AI-first compute architectures. The companies that succeed in AI computing are those that embed AI capabilities across all their silicon, not just in a dedicated GPU line.”
Intel has already integrated AI acceleration into its CPUs, a strategy Singh sees as Tan’s likely focus. Rather than chasing Nvidia, Intel may embed AI directly into CPUs and other processors, providing enterprises a scalable AI solution without requiring a full GPU redesign.
Still, discrete GPUs are unlikely to vanish entirely. “Certain workloads will continue to demand dedicated AI processors, and Intel may still pursue this space,” Singh said. “But the difference under Tan will be an emphasis on AI computing as a whole, rather than a myopic race to compete with Nvidia in the GPU market alone.”
Intel’s broader AI investments reflect this diversified approach. “Gaudi, as an example, is not a GPU,” said Paquet. “It is an AI accelerator, not a general-purpose GPU. Intel must continue developing processor types that offer growth opportunities, particularly in AI. On the PC side, Intel has GPUs and NPUs in its portfolio to support AI workloads.”
What enterprise IT buyers can expect
Analysts largely agree that Intel’s server roadmap is set through 2025, with no immediate changes expected under Tan. Major realignments at the server and large-die product level require longer timelines, making short-term shifts unlikely.
“In the longer term, 2026-2028, we expect major reshuffling in Intel’s server and client roadmap, both geared to AI compute and AI PC market opportunity,” Faruqui said. This “will build on Intel 18A platform derivatives and will require specific partnerships in the ecosystem to ensure product competitiveness,” he added.
Intel faces a fundamental challenge: balancing support for its existing x86 enterprise base while adapting to a market increasingly driven by AI-first computing and alternative architectures.
Singh expects Tan to take a more modular and AI-driven approach to Intel’s server strategy, which could involve:
- Hybrid compute models, where x86 remains but AI acceleration plays a much larger role.
- Faster product cycles, as Intel moves to become more agile in responding to market shifts.
- Potential restructuring, possibly creating clearer distinctions between AI-first products and traditional x86 offerings.
“One big question is whether Tan will push Intel closer to an ARM/RISC-V future for data centers,” Singh added. “While it’s unlikely that Intel will abandon x86, it is possible that the company will explore hybrid architectures that incorporate elements of ARM or RISC-V for certain workloads.”
Rawat also pointed out that Intel’s strategy under Tan will likely include supply chain investments and stronger foundry partnerships to enhance manufacturing resilience. While these changes may cause short-term production adjustments, he expects them to ensure more predictable supply chains in the long run.
For enterprise IT buyers, the key takeaway is continuity rather than disruption. The x86 architecture will remain central, but Intel is expected to pursue a more diversified, AI-integrated approach to server computing. IT leaders planning long-term infrastructure investments should monitor Intel’s moves — not just in CPUs, but across its broader AI-driven compute stack.