TechInsights: AMD surpasses Intel in data center revenue for the first time
AMD surpassed Intel in data center revenue for the first time in 2024, primarily due to its success in the data center accelerator market. AMD's GPU business exceeded $1.5 billion this quarter, and the EPYC series CPUs significantly increased market share. Its design choices and TSMC's chiplet architecture have positioned AMD as the leading x86 data center CPU supplier in the AI boom. Strong growth in Instinct GPUs and EPYC CPUs led to quarterly data center revenue exceeding $3.5 billion
According to the Zhitong Finance APP, TechInsights stated that 2024 is a year full of firsts for AMD (AMD.US), as it has surpassed Intel (INTC.US) in data center revenue for the first time. What is the secret? The answer lies in its success in the data center accelerator market. In just this quarter, AMD's data center GPU business exceeded $1.5 billion. In addition, AMD's EPYC series CPUs have significantly increased their market share in the x86 CPU data center market since their launch. This remarkable achievement can be attributed to its design choices, which include increasing the number of cores and adopting TSMC's chiplet design architecture.
Before the AI boom, AMD revitalized itself to become a leading x86 data center CPU supplier. Over four years, its market share has significantly increased, steadily eating into Intel's market share. The EPYC processors launched in 2017 adopted a chiplet design, leveraging TSMC technology for scalability, high yield, and competitive pricing. With advancements in technology, EPYC performance has continuously improved, with the latest Turin processors featuring 192 cores and 384 threads, utilizing 3nm and 6nm processes.
The rise of Instinct marks a significant 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 revenue has exceeded $3.5 billion. Since the launch of Radeon Instinct in 2016, AMD has continuously positioned itself in the AI accelerator market. The launch of MI100 in 2021 solidified its position. AMD's success is attributed to several factors, the most important being the lack of alternatives for customers aside from NVIDIA and the delays in Intel's accelerator products, which provided AMD with market opportunities