Nov 06, 2024 12:24:00

AMD surpasses Intel in data center revenue for first time

It turns out that AMD has overtaken Intel, which has been the market leader in server products, for the first time. This is believed to be because AMD's EPYC processors have gained a competitive advantage over Intel's Xeon CPUs.

For the first time ever, AMD outsells Intel in the datacenter space | Tom's Hardware

https://www.tomshardware.com/pc-components/cpus/for-the-first-time-ever-amd-outsells-intel-in-the-datacenter-space

According to

Intel's third quarter 2024 financial results , the company's data center and AI divisions will generate revenue of $3.3 billion (approximately 500 billion yen). Meanwhile, according to AMD's third quarter 2024 financial results , the company's data center division's revenue has reached $3.549 billion (approximately 540 billion yen).

Intel has led the data center CPU market for over 20 years, but for the first time this quarter it was beaten by AMD.

Intel has launched its Xeon processors, which offer twice the performance of the previous generation, to support the data center market, but according to technology media Tom's Hardware, 'Xeon still powers the majority of servers, but the most expensive machines use AMD's EPYC processors.'

In the third quarter of 2024, Intel's Data Center and AI division achieved revenue growth of 9% year over year, but quarterly revenue has halved over the past two years. This is because AMD's EPYC processors have gained a competitive advantage over Intel's Xeon CPUs, forcing Intel to sell its server chips at steep discounts, reducing revenue and profit margins.

Tom's Hardware noted, 'What's noteworthy is that Intel has begun offering its industry-leading flagship 128-core Xeon 6980P Granite Rapids at a price that is far above the competition. AMD's top chip is the 96-core EPYC 9654, which is 32 cores lower than the Xeon 6980P and costs $6,000 more (about 920,000 yen), so if the high-end orientation required for the Xeon 6900 series processors continues and Intel can continue to supply the appropriate quantities to meet this demand, Intel's data center division's sales are likely to get back on track and surpass AMD.'

NVIDIA, which mainly sells GPU products, outperforms both Intel and AMD, with sales of GPUs and network chips for data centers reaching $3.668 billion (about 560 billion).

AMD overtook Intel for the first time in data center revenue in 3Q24. But, their DC revenue scale is small that they are less than NVIDIA's networking (non compute) revenue alone. pic.twitter.com/3LEGTkDF8T

— Sravan Kundojjala (@SKundojjala) November 3, 2024