What you need to know
- A report by SemiAnalysis indicates AMD recently ended Intel's long reign as the top chip brand for data center processors.
- More consumers are seemingly inclined toward AMD's EPYC processors to power their sophisticated machines than Intel's Xeon processors.
- AMD reported $3.549 billion in revenue from its data center business in Q3 2024, significantly higher than Intel's $3.3 billion.
Intel can't seem to catch a break. In a surprising turn, AMD has toppled Intel's long reign as the top chip brand for data center processors. Most corporations heavily relied on Intel's Xeon CPUs to power their servers for the longest time, with AMD stacking miles behind (via Tom's Hardware).
Recently, corporations have been more inclined to power their sophisticated machines with AMD's EPYC processors. However, most servers still run on Intel's Xeon processors. According to a report by SemiAnalysis, AMD's data center business outsells Intel's.
For context, AMD reported $3.549 billion in revenue from its data center business in Q3 2024 compared to Intel's $3.3 billion. While the gap isn't too significant, AMD still holds the lead. This suggests a shift in consumer interest, giving AMD a competitive advantage over Intel as its advanced EPYC processors gain popularity. It can also be attributed to Intel's heavy discounts on server chips, which has consequently scaled down its revenue and profit margins.
NVIDIA scales even greater heights with a strong demand for AI chips
NVIDIA's strategic position in the AI landscape briefly made it the world's most valuable company, ahead of Apple and Microsoft, with over $3 trillion in market valuation. Last year, the high demand for AI chips also made it the most profitable chip brand in the world.
More recently, NVIDIA's market valuation surged due to the rising demand for AI chips. For context, the company's market cap rose by 9.3%, pushing its valuation to $3.26 trillion.
Interestingly, Microsoft and OpenAI invested $100 billion in a project called Stargate. The data center will help support both companies' AI advances by meeting their high demand for GPUs. The project is expected to launch in 2028 and will reduce the overreliance on NVIDIA for AI chips.
Interestingly, Microsoft and OpenAI invested $100 billion in a project called Stargate. The data center will help support both companies' AI advances by meeting their high demand for GPUs. The project is expected to launch in 2028 and will reduce the overreliance on NVIDIA for AI chips.
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