AMD just outsold Intel in the data center space for the first time ever

(Image credit: AMD)

AMD data center revenue has officially passed that of rival Intel
Intel’s revenue down year-on-year, but hopes next quarter should be better
Nvidia remains the market leader for AI chips by a long shot

AMD has overtaken Intel in the data center CPU market for the first time ever as both firms battle for leadership in what has become a highly lucrative area thanks to the computational needs of new AI tools.

New SemiAnalysis research claims AMD’s data center segment revenue reached $3.549 billion in the third quarter of 2024, a slight touch above Intel’s $3.3 billion figure for the same period.

While the upward trend marks a positive point for AMD, its total data center revenue is still below Nvidia’s networking revenue alone. Early to the market, Nvidia has profited off the AI boom and now has a market cap of more than $3 trillion, making it one of just three companies to have crossed that line.

AMD’s data center revenue is more than Intel’s

The news comes as Intel continues to struggle financially, following several rounds of layoffs and other cost-cutting measures.

This is despite Intel’s Xeon processors being synonymous with data centers, powering many of the world’s servers. Increased pressure from AMD, with its EPYC processors, is adding to the financial stress at Intel.

It’s also worth noting AMD’s top-tier 96-core EPYC 6979P processor costs around $11,800, or $6,000 less than Intel’s flagship 128-core Xeon 6980P Granite Rapids processor. The added cost-effectiveness has undoubtedly played into data center operators’ purchasing decisions.

Intel recently confirmed quarterly revenue of $13.3 billion, down 6% from the $14.2 billion in revenue it made one year before. The decline was anticipated, though, and CEO Pat Gelsinger indicated satisfaction with the company’s “solid progress” to drive operational efficiency.

The company expects around $13.3 billion in revenue next quarter at the low point, and $14.3 billion at the high point.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!