More bad news for Intel: AMD is making rapid progress in a key market

The latest predictions from Mercury Research indicate that AMD will continue its hot streak in the server processor market, further eroding Intel’s lead.

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 hardware (opens in new tab)the latest quarterly increase is potentially the largest on record for AMD, suggesting that the momentum behind the company’s EYPC line of chips is only growing.

Intel is having a hard time

Although the return of Pat Gelsinger to the role of CEO last year seemed to breathe new life into Intel, the company has been suffering from a period of turbulence recently.

In July, Intel released a dismal quarterly earnings report that was marred by a 22% year-over-year revenue decline. The performance was so bad that 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 processor market has traditionally been a stronghold for Intel, whose Xeon chips dominate virtually all subsectors, from cloud to HPC. However, the implementation of Team Blue’s next-generation processors, codenamed Sapphire Rapids, was interrupted by delays. Originally scheduled for release in 2021, the new server chips are now expected to hit the market in the first quarter of 2023.

Meanwhile, AMD is going from strength to strength with its high-core EPYC processors, eating into Intel’s lead significantly.

Nvidia’s impending entry into the market, as well as the rise of Arm-based chips built by hyperscalers like AWS, will only increase the level of competition between vendors – and the pressure on Intel.

In Questions and Answers with TechRadar Pro Last month, AMD’s head of sales for Europe, the Middle East and Africa, Roger Benson, outlined the company’s strategy for capturing an even bigger slice of the pie in the coming months and years.

“Having successfully established AMD EPYC in HPC and the cloud, we are now accelerating into core enterprise IT and telecommunications,” he said.

“In the enterprise, we’re seeing customers adopt AMD EPYC servers for software-defined storage and virtualization, and now we’re seeing customers increasingly using our products in database and analytics solutions. And in telecommunications, customers are certifying AMD EPYC servers for core network solutions, and in the 5G era, we expect edge server solutions to emerge as well.”

“We work with customers to deliver the right compute engine for the right workload in their data centers. AMD’s fourth-generation EPYC processors will continue this path for our next generation.”

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