- AMD’s data center revenue is officially higher than that of competitor Intel
- Intel’s revenue fell year-on-year, but hopes the next quarter should be better
- Nvidia will remain the market leader in AI chips for a long time to come
AMD has overtaken Intel for the first time in the data center CPU market, as both companies battle for leadership in what has become a highly lucrative area thanks to the computational needs of new AI tools.
New Semi-analysis Research shows that AMD’s data center segment revenue was $3.549 billion in the third quarter of 2024, slightly above Intel’s $3.3 billion for the same period.
While the upward trend is a positive for AMD, its total data center revenues are still below Nvidia’s network revenues alone. Nvidia entered the market early and has benefited from the AI boom and now has a market cap of more than $3 trillion, making it one of just three companies to break that mark.
AMD’s data center revenue is higher than Intel’s
The news comes as Intel continues to struggle financially, following several layoffs and other cost-cutting measures.
This is despite the fact that Intel’s Xeon processors are synonymous with data centers, which power many of the world’s servers. Increased pressure from AMD, with its EPYC processors, is adding to Intel’s financial stress.
It’s also worth noting that AMD’s top-end 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 a role in data center operators’ purchasing decisions.
Intel recently confirmed quarterly revenue of $13.3 billion, down 6% from the $14.2 billion in revenue it achieved a year earlier. However, the decline was expected and CEO Pat Gelsinger said he was pleased with the company’s “solid progress” in operational efficiency.
The company expects revenue next quarter of about $13.3 billion at the low point, and $14.3 billion at the high point.