AMD datacenter revenue overtakes Intel for the first time

AMD has overtaken Intel in the datacenter market, but Nvidia is the new dominant force

For decades, Intel has been the king of the datacenter market. Their Xeon CPUs powered the vast majority of servers, and competition was weak. Now, the market has changed, and based on new data from SemiAnalysis, AMD has overtaken Intel in datacenter revenue for the first time.

AMD’s datacenter growth comes from two primary vectors. First, there are AMD’s EPYC CPU sales. Next, there is the success of their MI300 series accelerators. AMD’s datacenter CPU market share is growing, and AMD’s introduction of powerful AI accelerators gives them a growth vector that Intel mostly lacks.

It is unknown if AMD will continue to deliver higher datacenter revenues than Intel. Intel’s new Granite Rapides Xeon CPUs have delivered impressive performance and high core counts. However, it remains to be seen if this is enough to grow Intel’s Datacenter revenues and counter AMD’s rise. Is AMD only temporarily passed Intel, or will AMD’s growth continue to outpace Intel’s in this highly lucrative market?

While AMD passing Intel is a notable change, it should be noted that Nvidia’s growth in the world of datacenters has been astounding. Nvidia’s AI accelerators are dominant within the AI/HPC markets, leading to explosive growth for the company. Note that Nvidia’s networking revenue alone has surpassed Intel and AMD’s datacenter revenue. Another thing to note is that this revenue doesn’t include Nvidia’s GPU/compute sales. Remember that Nvidia sold $42 billion worth of AI/HPC GPUs in the first half of this year. This makes AMD/Intel’s datacenter sales look small by comparison.

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