Mercury Research’s latest forecast shows AMD intends to continue its hot streak in server processor market, which further weakens Intel’s advantage.
The company’s analysis suggests that AMD has increased its server processor market share to 13.9% this quarter, marking the 13th consecutive period of growth.
According to our sister site Tom’s gear (opens in a new tab)the latest quarterly profit is potentially the largest in AMD’s history, suggesting that the dynamics of the company’s EYPC chip line is only on the rise.
Intel is going through hard times
While Pat Gelsinger’s return to CEO last year seemed to breathe new life into Intel, the company is suffering from recent turbulence.
In July, Intel released a bleak quarterly earnings report, with a 22% year-on-year drop in revenue as the highlight. The performance was so bad that Gelsinger took to Twitter to apologize publicly.
“This quarter’s results were below the standards we set for the company and our shareholders. We have to and we will do it better, ”he wrote.
The server processor market has traditionally been the mainstay of Intel, whose Xeon chips dominate virtually all subsectors, from Cloud to HPC. However, the implementation of the next-generation Team Blue processors codenamed Sapphire Rapids remained punctuated by delays. Originally scheduled for release in 2021, the new server chips are expected to hit the market in the first quarter of 2023.
Meanwhile, AMD grew stronger with high-core EPYC processors, far ahead of Intel.
Nvidia’s impending market entry, as well as the arrival of Arm-based chips built by hyperscalers like AWS, will only increase the level of competition among vendors – and put pressure on Intel.
In Q&A with TechRadar Pro Last month AMD’s EMEA sales chief Roger Benson unveiled the company’s strategy to take over an even bigger slice of the pie in the coming months and years.
“After successfully establishing AMD EPYC in HPC and the cloud, we are now accelerating in mainstream IT and enterprise telecommunications,” he said.
“In enterprises, we’ve seen customers use AMD EPYC servers for storage and software-defined virtualization, and now we’re seeing customers increasingly using our products for database and analytics solutions. In the telecommunications industry, customers are certifying AMD EPYC servers for backbone solutions, and we expect to see edge server solutions in the 5G era as well.
“We work with customers to ensure that they have the right computing engine for the right workload in their data centers. The fourth generation of AMD EPYC processors will continue this path in our next generation. ”