More bad news for Intel: AMD is making rapid progress in a key market
AMD is eating into Intel’s lead in the server CPU space
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The latest projections from Mercury Research show thatAMDis set to continue its hot streak in theserverprocessor market, further eroding Intel’s lead.
The company’s analysis suggests AMD increased its serverCPUmarket share to 13.9% this quarter, marking a 13th consecutive period of growth.
According to our sister siteTom’s Hardware, the latest quarterly gain is potentially the largest on record for AMD, suggesting the momentum behind the company’s line of EYPC chips is only growing.
Intel hits hard times
Although the return of Pat Gelsinger to the role of CEO last year appeared to breathe new life intoIntel, the company is suffering through a period of turbulence of late.
In July, Intel published a dismal quarterly earnings report, the lowlight of which was a 22% drop in revenue year-on-year. So bad was the performance, Gelsinger took to Twitter to issue a public apology.
“This quarter’s results were below the standards we have set for the company and our shareholders. We must and will do better,” he wrote.
The server CPU market has traditionally been a stronghold for Intel, whose Xeon chips have dominated practically all sub-sectors, fromcloudto HPC. However, the rollout of Team Blue’s next-generation processors, codenamed Sapphire Rapids, has beenpunctuated by delays. Originally scheduled to launch in 2021, the new server chips are now expected to come to market some time in Q1 2023.
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AMD, meanwhile, has gone from strength to strength with its high core-count EPYC CPUs, eating into Intel’s lead significantly.
The imminent entrance into the market ofNvidia, as well as the rise ofArm-based chips built by hyperscalers like AWS, will only ratchet up the level of competition among vendors - and the pressure on Intel.
AMD’s new 64-core Threadripper Pro CPU is now on sale>Our list of the best dedicated server hosting providers out there>AMD breaks 1GB L3 cache barrier with new EPYC processors
In aQ&A withTechRadar Prolast month, AMD’s head of EMEA sales, Roger Benson, outlined the company’s strategy for seizing an even larger slice of the pie in the months and years ahead.
“Having successfully established AMD EPYC in HPC and cloud, we are now accelerating in mainstream enterprise IT and telecommunications,” he said.
“In enterprise, we have seen customers embrace AMD EPYC servers for software defined storage andvirtualization, and now we see customers increasingly using our products indatabaseand analytics solutions. And in telco, customers are certifying AMD EPYC servers for core network solutions, and going forward in the 5G era, we expect edge server solutions will come as well.”
“We are working with customers to provide the right compute engine for the right workload in their data centers. AMD’s 4th generation EPYC processors will continue this path for our next generation.”
Joel Khalili is the News and Features Editor at TechRadar Pro, covering cybersecurity, data privacy, cloud, AI, blockchain, internet infrastructure, 5G, data storage and computing. He’s responsible for curating our news content, as well as commissioning and producing features on the technologies that are transforming the way the world does business.
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