AMD continues to extend its share of each the general x86 chip market and the server x86 market in specific, regardless of a large-scale common downturn in shipments, based on a report launched this week by Mercury Research.
The majority of the fall-off in x86 shipments was felt in the desktop market, the report mentioned, however the server market was additionally down on a quarterly quantity foundation — regardless of reaching file highs in income.
Dean McCarron, president of Mercury Research, mentioned that the decline was as a result of a mix of things.
“There’s a pretty heavy uplift in Q4 on consumer systems due to holiday buying, and it drops off in Q1,” he mentioned. “Typically, the worst drop of the year happens in Q1, so not only did that happen, but there’s also some excess inventory that got built up and negatively impacted sales.”
Nevertheless, AMD continued its strong gains in the server market, rising from 10.7% in the fourth quarter of 2021 to 11.6% in the primary quarter of this yr. That’s smaller than the corporate’s share achieve in the desktop market, which rose from 16.2% to 18.3% over the identical interval — however represents significant progress nonetheless.
McCarron mentioned that AMD’s gains on chief rival Intel have been constant in the server market for a very long time.
Epyc chips increase AMD’s server market share
“It’s been a long, gradual increase. Iif you look at the data set now, AMD has completed their third consecutive year of having on-quarter gains in share,” he mentioned. “The main driver there is that AMD has its Epyc processors … and each generation has been a little bit more successful than the prior one.”
When AMD launched its Epyc processors 5 years in the past, Intel had a 98% share of the server chip market; that’s now all the way down to 88.4%.
The “Milan” era of Epyc processors, McCarron added, has been notably profitable, and has seemingly pushed most of AMD’s server share achieve in the previous yr. However, it is the accrued goodwill of manufacturing dependable, performant server chips for years that is actually buttressing the corporate’s gross sales.
“This isn’t the first time [AMD]’s had success in the market, they had success more than a decade ago, and now they’re getting back in,” he mentioned. “The key here is that they’ve established a pattern of delivery on product reliability.”
Nor is AMD the one firm making headway into what was, for a very long time, largely a single-company market. Arm not too long ago entered the server silicon market, and whereas that chipmaker’s market share remains to be minimal — lower than 1% 0 — McCarron mentioned that it is seemingly on the rise.
“ARM is making inroads into data center, [but] it’s starting from much farther back than AMD,” he mentioned. “The activity around Arm is primarily customization, and that’s something that both Intel and AMD have emphasized in their products – that’s not a response to Arm, but rather a recognition that the market is looking for more customized solutions, and that everyone’s trying to address that.”
Copyright © 2022 IDG Communications, Inc.
AMD makes steady gains on Intel in server chip market & More Latest News Update
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