AMD has overtaken Intel for the first time! Find out what’s behind this breakthrough and why this result could be a game changer in the tech industry.
For years, Intel has been number one in the data center processor market, leading the way with its Xeon series. AMD, although present in the industry for a long time, until recently could only dream of a significant share in this space. Today the situation is completely different. In the third quarter of 2024, AMD officially overtook Intel in data center processor sales – which is quite a feat considering Intel’s history and position. What is behind this breakthrough and what does it mean for the future of the industry?
AMD is growing stronger – the EPYC success story
Just seven years ago, AMD processors had a marginal share of the server market – just a single-digit share of total sales. Everything changed with the premiere of the EPYC series, which began to gain more and more recognition among professionals. Thanks to the technological solutions used and more competitive prices, EPYC began to become the first choice for the most expensive and demanding machines. The result is AMD’s data center revenue of $3.549 billion in the third quarter of 2024. By comparison, Intel achieved $3.3 billion in the same period, a big decline compared to the company’s previous results of $5-6 billion per quarter.
What attracted customers to AMD?
AMD attracted customers with several key factors. The most expensive processor (EPYC 6979P) with 96 cores costs around $11,805, while the flagship 128-core Intel Xeon 6980P costs as much as $17,800. AMD therefore offers an efficient product for less money, which is a significant advantage. Intel, in response to the growing popularity of its competitor, was forced to reduce the prices of its Xeon processors, which in turn reduced revenues and margins.
Intel in retreat?
Although Intel still leads in terms of total server processors sold, it faces significant challenges. The new Xeon 6900 series based on the Granite Rapids architecture is expected to help the company regain its position, but the pace of their production and market reaction will be key. If Intel manages to deliver these processors in large quantities and maintain high quality, perhaps the company will reverse the negative trend and overtake AMD again.
Nvidia: Third player with a huge advantage
While Intel and AMD fight for supremacy in the server processor market, Nvidia dominates the GPU sector, which is driving the development of artificial intelligence. In the second fiscal quarter of 2025, Nvidia achieved $3.668 billion in profit from sales of networking products and as much as $22.604 billion from sales of GPUs to data centers. In total, Nvidia sold $42 billion worth of processors and AI hardware in the first half of the year – putting the brand far ahead of its competitors.
To sum up, the data center industry is undergoing a huge transformation, and AMD is becoming a real rival to Intel, which seemed unattainable a few years ago. It is worth monitoring how the market will react to new solutions and how further investments in AI and processor development will affect the future of the entire industry.
Source: antyweb.pl
