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Opinion: Intel’s data-center prospects could also be ‘digesting,’ however AMD’s buffet is extensive open 


Whereas Intel Corp. says data-center prospects are “digesting,” they appear to nonetheless be bellying as much as a longtime rival’s buffet.

Superior Micro Gadgets Inc.’s server-chip gross sales usually are not having any of the problems that its massive rival mentioned final week (when Intel stated data-center gross sales dropped by 20%) leaving buyers with the plain conclusion: AMD
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should be taking some market share away from Intel
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within the coveted data-center enterprise. AMD reported report quarterly gross sales Tuesday afternoon, and Chief Government Lisa Su revealed that data-center gross sales had doubled from the identical time final yr.

AMD executives and buyers have lengthy dreamed of once more changing into a authentic competitor to Intel within the server and data-center market, and Su seems to have made that dream come true. Its Epyc line of server chips skilled large gross sales progress within the first quarter that Intel’s Xeon didn’t. Sadly, AMD once more prevented offering uncooked gross sales figures to guage, however a minimum of Su gave a qualitative measure separate from the also-booming semi-custom enterprise, which offers chips for each of the brand new gaming consoles available on the market.

Learn additionally: Intel’s new CEO has one other drawback to repair

“Based mostly on each AMD and Intel’s earnings stories, I do imagine that AMD took a little bit of server share from Intel,” stated Patrick Moorhead, principal analyst at Moor Insights and Technique. “AMD sadly doesn’t report Epyc income and blends with semi-custom, however I do imagine Epyc grew income whereas Xeon income declined.”

AMD additionally believes that momentum in information heart will proceed. Executives added greater than $1 billion to their annual income steerage, and stated gross sales within the present quarter would develop by greater than 85%. One analyst, Vivek Arya with BankofAmerica Securities, requested the place AMD will get that confidence, opening Su up for a dig at Intel.

“Might you give us some sense of what has modified within the final three months, as a result of your competitor was not too long ago speaking about cloud digestion, and also you’re elevating steerage by $1.3 billion,” Arya requested.

“I believe we noticed really robust alerts within the first quarter that it will be a powerful data-center yr for us,” Su stated. “The availability chain has been tight general for the semiconductor trade, and we’ve been working very carefully with our supply-chain companions and so we even have good visibility to extra provide as we go all year long.”

Whereas declining to name out the bigger rival that for years has foiled her predecessors’ makes an attempt to compete with it, Su nonetheless stated what she wanted to — whereas Intel could face a requirement drawback for its server chips, AMD is barely involved about provide because it enters what she referred to as a “excessive efficiency computing mega cycle.” That reality alone needs to be sufficient to present executives at Intel indigestion.



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