For the first time in history, AMD’s sales surpassed Intel’s in the data center market

For more than 2 decades, Intel has been the undisputed leader of the data center processor market. Intel’s Xeon processors powered the majority of servers, but AMD’s had a single-digit market share just 7 or 8 years ago, but that has changed dramatically.

Intel’s Xeon processors still power most servers, but the most expensive machines now use AMD’s EPYC processors; That’s why, as SemiAnalysis reports, AMD’s data center business unit now has more sales than Intel’s data center and AI business group.

AMD’s data center revenue reached $3.549 billion in the third quarter, but Intel’s data center and artificial intelligence group revenue reached $3.3 billion in the third quarter of 2024. Just 2 years ago, this division of Intel was making $5-6 billion per quarter. But as AMD’s EPYC processors have gained competitive advantages over Intel’s Xeon processors, Intel has been forced to sell its server chips at significant discounts, which has cut into the company’s revenue and margins.

Intel’s 128-core Xeon 6980P Granite Rapids processor costs $17,800, making it the company’s most expensive entry-level CPU. In contrast, AMD’s most expensive 96-core EPYC 6979P processor costs around $11,805. If demand for Intel’s Xeon 6900-series processors remains strong and the company can supply them in sufficient volume, Intel’s data center revenue will likely get back on track and outpace AMD’s data center sales, but Intel still needs to build its Granite Rapids products. to increase

Nvidia has more revenue than Intel and AMD in data center and networking chips

Both Intel and AMD currently earn about $3.5 billion to $3.5 billion per quarter from data center processor sales, but Nvidia makes more money from its data center graphics and networking chips, which are needed to coordinate AI processors in data centers. . In fact, sales of Nvidia’s network products reached $3.668 billion in the second quarter of fiscal 2025.

Meanwhile, sales of computational graphics processors reached $22.604 billion in the second quarter of fiscal 2025, far exceeding Intel and AMD data center hardware sales combined. In total, Nvidia sold nearly $42 billion in AI and HPC GPUs in the first half of this year, and the company is likely to sell even more data center processors in the second half of the year.