That allows AMD to make big gains in this space in the future thanks to its technological advantage.
The good part is that AMD's share of the server processor market is still quite small, as Intel commanded just over 90% of the space last quarter. That's because a smaller node size will allow AMD to pack in more transistors and reduce power consumption, which will result in a higher core count and superior computing power. Intel's next-generation server CPUs will be based on a 10nm manufacturing process, which means that Chipzilla will be at a disadvantage when AMD launches its 5nm processors. Meanwhile, Intel had announced at the end of June that the launch of its next-generation Sapphire Rapids server CPUs has been delayed to the first quarter of 2022. The fourth-gen server chips are expected to pack a maximum of 96 cores as compared to 64 cores in the current-generation chips, indicating a nice jump in performance. More importantly, AMD's relentless pursuit of share in the server market is likely to get a shot in the arm when it launches its fourth-generation EPYC server chips, codenamed Genoa, based on a 5-nanometer manufacturing process next year. The chipmaker supplied 59% of the processing cores to new supercomputer systems in the top 500 list in June 2021, up from 46% in November of last year.Īdditionally, AMD had pointed out in its July earnings conference call that server chip demand has accelerated on the back of "growing internal workload adoption and nearly 50 new AMD-powered instances by Amazon Web Services, Microsoft Azure, Google, Tencent and Alibaba." The company further added that enterprise demand for its server processors is set to accelerate as more than 100 systems powered by its third-generation EPYC servers are in production from the likes of Dell, Hewlett Packard Enterprise, Lenovo, Supermicro, Cisco, and others. AMD's EPYC server chips are gaining prominence in the world's top 500 supercomputers. Those claims are translating into real-world gains.
AMD had claimed that its third-generation EPYC processors offer double the performance of their Intel counterparts. This isn't surprising, as AMD's latest generation of EPYC server processors is reportedly much faster than Intel's offerings. The chipmaker's server market share increased 3.7 percentage points over the year-ago period to 9.5% in Q2. Intel held the rest of the market.ĪMD's market share gains were driven primarily by the server market. AMD's share increased an impressive 4.2 percentage points year year and 1.8 percentage points from the first quarter. Image source: Getty Images AMD wins big thanks to the server marketĪccording to Mercury Research, AMD held 22.5% of the overall x86 CPU market at the end of Q2, its highest share in the past 14 years.