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Intel server chip shipment volumes return to growth in 2025
Sunday, January 25, 2026 at 11:57 AM
Intel recorded a 9% year-over-year increase in server chip shipment volumes for 2025, marking the first growth in this segment since 2021. The datacenter division also achieved its highest revenue to date, driven by demand for Xeon processors and Gaudi AI accelerators.
Context
Intel has achieved a significant turnaround in its datacenter segment, reporting a 9% year-over-year increase in server chip volumes for 2025. This marks the first volume growth for the division since 2021, driving revenue and operating income to their highest levels since 2022. The shift signals a vital recovery after three years of underperformance, as the company reallocates internal manufacturing capacity to prioritize high-demand datacenter silicon over less profitable product lines.
Although 1Q26 is expected to see a seasonal decline, the outlook for the remainder of the year is bolstered by this strategic capacity pivot. While Intel still trails AMD in total datacenter revenue, the improved internal output suggests a more aggressive competitive stance. This momentum is critical for Intel as it seeks to stabilize its market position and capitalize on the sustained expansion of AI-driven server infrastructure throughout 2026.
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