Intel Confirms Nova Lake to Bridge High-End Desktop CPU Gap with AMD by Late 2026, Reintroducing SMT to P-Cores with “Coral Rapids” for Servers by 2028-2029, Emphasizes Need for Xe GPU Consolidation, and Targets 55% Server Market Share

Intel’s CEO, Lip-Bu Tan, recently shared notable insights during the latest earnings call, providing a glimpse into the future of Intel’s product lineup, including the highly anticipated Nova Lake CPUs, the Coral Rapids server CPUs with simultaneous multithreading (SMT) enabled for P-Cores, and strategic directions for their GPU offerings.

Intel’s Strategic Shift: Reintroducing SMT with Coral Rapids and Nova Lake CPUs Set for 2024

In a significant move, Intel announced plans to reduce its workforce by an additional 30%, lowering its headcount to approximately 75, 000 employees. This decision comes amid their struggle to maintain competitiveness in the advanced chip manufacturing space, particularly the 18A and 14A process nodes, unless substantial interest is generated from external clients. Given these financial challenges, one might wonder what the future holds for Intel under Lip-Bu Tan’s leadership.

A roadmap for Intel’s future initiatives is beginning to take shape. Central to this plan is the upcoming Panther Lake CPU, a pivotal 18A product slated to focus on the consumer market. The company aims to enable the Panther Lake launch later this year with initial stock-keeping units (SKUs) expected by year-end and further releases anticipated in the first half of 2026. The success of Panther Lake is crucial, as it will significantly influence Intel’s strategic direction moving forward.

Intel's Panther Lake CPUs — Intel’s Panther Lake CPUs will focus on the mobility segment with innovative CPU and GPU architectures. Image Source: Intel

However, the launch of Panther Lake will not be without challenges. Lip-Bu noted that the ramp-up of these CPUs is critical, particularly as they will face pressure on profit margins due to elevated wafer costs. The trajectory of Panther Lake’s production and yield improvement will be vital to achieving the desired cost structure that benefits Intel in the long run.

Our foundry and product teams remain focused on enabling Panther Lake to launch this year.

Next, on to our core x86 franchise. In client, our top priority is delivering our first Panther Lake WeU by year-end, followed by additional WeUs in the first half of 2026. The successful launch of Panther Lake will solidify our strong share in the notebook market across consumer and enterprise.

So far, I feel confident that we can launch our Panther Lake WeU by the end of the year.

The second big driver of gross margins is the ramp that Lip-Bu just discussed of Panther Lake…

Lip-Bu Tan – Intel CEO

What lies ahead beyond the immediate horizon? The CEO has communicated that Nova Lake CPUs are poised to bridge gaps in the high-end desktop market. While these CPUs will cater to both desktop and mobile platforms, the primary emphasis will be on desktops, an area where AMD has been fiercely competitive, excelling in performance across diverse categories like gaming and efficiency.

Intel Core Ultra 200HX & Core Ultra 200H CPUs — Intel’s “Core Ultra” Nova Lake CPU family is designed to serve both the desktop and mobile markets effectively. Image Source: Intel

Furthermore, Intel has confirmed that the 18A process will lay the groundwork for at least three generations of its client and server products. The Nova Lake series is set to feature up to 52 cores alongside advanced Xe graphics architecture, positioning it as a significant contender following the less successful Arrow Lake desktop launch.

We still have gaps to close in the high-end desktop market, but I’m encouraged by our unmatched go-to-market reach and the progress we are making on Nova Lake, due out at the end of 2026.

18A is a foundation for at least three generations of our Intel client and server business products.

Lip-Bu Tan – Intel CEO

Turning to the server segment, Intel is introducing a new “Rapids”family to succeed the Diamond Rapids lineup. Expected in the next year, the Diamond Rapids will feature Panther Cove P-Cores while the Clearwater Forest will utilize Darkmont E-Cores, with the latter set to offer up to 288 cores. The subsequent generation, Coral Rapids, is projected for release between 2028 and 2029, and will reintegrate SMT support—an architecture change previously omitted in Diamond Rapids.

I think clearly, we are looking at reviewing our roadmap… And we will ensure that we have robust products ready for the Coral Rapids in ’28, ’29.

Lip-Bu Tan – Intel CEO

The reincorporation of SMT in the Coral Rapids signifies a strategic reversal for Intel, as past decisions to exclude this feature from server CPUs may have negatively impacted their market share, now pegged at 55%, allowing AMD to gain significant ground with its EPYC processors.

We still hold about 55% in server market share, but we’ve made some missteps in the high-performance server domain, particularly regarding synchronized multi-threading.

Lip-Bu Tan – Intel CEO

Lastly, there are discussions surrounding Xe GPUs, with a focus on integrating these with their x86 CPU architecture. Intel plans to maintain its commitment to Xe graphics not only in the context of AI initiatives but also within its consumer products like integrated GPUs. Recent developments indicate ongoing support for larger GPU models, particularly the “Battlemage”series.

Intel’s Arc GPU plans remain uncertain, with future confirmations pending. Image Source: Intel

While the discrete graphics segment, such as the “Arc”lineup, wasn’t extensively covered, indications show that while Intel is not wholly abandoning discrete products, they may further reduce investment in this area. Moving forward, enthusiasts hope for continued development in both discrete and integrated graphic solutions.

Lastly, our approach toward AI has evolved; we previously focused on traditional silicon and training-centric strategies without a coherent systems software strategy. We recognize the critical need to strengthen our skills in systems and software, a domain where we have historically been weak.

Lip-Bu Tan – Intel CEO

In conclusion, Intel is at a crossroads, with its future reliant on the successful launch and execution of upcoming products. While Lip-Bu Tan exudes optimism regarding certain initiatives, he remains cautiously aware of the challenges faced in their foundry operations. The path forward for Intel will ultimately be determined by the success of their products as they navigate this competitive landscape.

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