TechInsights: AMD (AMD.US) surpasses Intel (INTC.US) in data center revenue for the first time
1min read Techlnsights published that 2024 is a year of many firsts for AMD (AMD.US) as it surpassed Intel (INTC.US) in data center revenue for the first time. The secret? Success in the data center accelerator market. AMD's data center GPU business alone exceeded $1.5 billion this quarter. In addition, AMD's EPYC series of CPUs has significantly increased its share in the x86 CPU data center market since its launch. This huge achievement can be attributed to its design choices of increasing core counts and adopting TSMC's chiplet design architecture.
AMD revived itself as a leading x86 data center CPU supplier before the AI boom, and its market share has significantly improved, steadily eating into Intel's market share. The EPYC processors launched in 2017 adopted the chiplet design, leveraging TSMC technology for scalability, high yield, and competitive pricing. With process advancements, EPYC performance has continuously improved, with the latest Turin processor featuring 192 cores and 384 threads, using 3nm and 6nm processes.
The rise of Instinct marked a major breakthrough for AMD in the data center market. With strong growth in Instinct GPU shipments and increased sales of AMD's EPYC CPUs, AMD reported that its quarterly data center business segment revenue exceeded $3.5 billion. AMD has been positioning itself in the AI accelerator market since launching Radeon Instinct in 2016. The 2021 launch of MI100 solidified its position. AMD's success is due to multiple factors, with the most important being the lack of alternatives for customers besides Nvidia and Intel's delays in accelerator products providing AMD with market opportunities.