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 Units 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 traders with


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 Units 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 traders with the plain conclusion: AMD
AMD,
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have to be taking some market share away from Intel
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within the coveted data-center enterprise. AMD reported document quarterly gross sales Tuesday afternoon, and Chief Govt Lisa Su revealed that data-center gross sales had doubled from the identical time final yr.

AMD executives and traders have lengthy dreamed of once more changing into a professional 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 evaluate, however no less than Su gave a qualitative measure separate from the also-booming semi-custom enterprise, which supplies chips for each of the brand new gaming consoles available on the market.

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

“Primarily based on each AMD and Intel’s earnings reviews, 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 steering, 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 just lately speaking about cloud digestion, and also you’re elevating steering by $1.3 billion,” Arya requested.

“I believe we noticed truly robust indicators within the first quarter that it could be a robust data-center yr for us,” Su stated. “The provision 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 further 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 downside 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 truth alone needs to be sufficient to offer executives at Intel indigestion.



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