AMD has overtaken Intel in the data center CPU market for the first time ever as both firms battle for leadership in what has become a highly lucrative area thanks to the computational needs of new AI tools.
New SemiAnalysis research claims AMD’s data center segment revenue reached $3.549 billion in the third quarter of 2024, a slight touch above Intel’s $3.3 billion figure for the same period.
While the upward trend marks a positive point for AMD, its total data center revenue is still below Nvidia’s networking revenue alone. Early to the market, Nvidia has profited off the AI boom and now has a market cap of more than $3 trillion, making it one of just three companies to have crossed that line.
The news comes as Intel continues to struggle financially, following several rounds of layoffs and other cost-cutting measures.
This is despite Intel’s Xeon processors being synonymous with data centers, powering many of the world’s servers. Increased pressure from AMD, with its EPYC processors, is adding to the financial stress at Intel.