In April, AMD reported quarterly revenue totaling $1.65 billion, up 40 percent from the same quarter last year. The big gains prompted observers to suggest AMD has grabbed market share from Intel, which also reported strong quarterly results as both chip makers benefit from heightened big data processing demand in datacenters (see HPCwire article, AMD Continues to Nip at Intel’s Heels). That’s not all EPYC. AMD’s Radeon GPU line is also faring well and the chip market is strong overall. Intel reported $16.1 billion for the quarter citing heavy datacenter demand for its Xeon Scalable processors.
It’s important to restate that AMD’s market share is tiny compared to Intel. That said, given the size of the market, a small market share at this time is probably one of AMD’s greatest strengths – it has enormous head room for awhile. If AMD delivers as promised, Intel will be hard pressed to prevent AMD from taking significant market share. How much remains to be seen.
“We see the data center as a $21 billion-plus opportunity with a combination of CPUs and GPUs. Talking only the CPU side, and really overall x86 is the dominant architecture, we are only one of two vendors that have access to the x86 technology that’s most relevant to the server market today. We estimate just the silicon portion of that market to be well over $15 billion. Today we have roughly one percent market share, a little more, but a vast opportunity ahead of us.” Said Narrod.
Whether this is a one-time victory lap or a sign of persistent renewed strength for AMD in the server CPU business remains to be seen. Stay tuned…