According to a report, Advanced Micro Devices (AMD, Financial) has sold more data center processors than Intel (INTC, Financial) this quarter, marking a major victory for the firm's EPYC processor line. AMD achieved $3.5 billion in data center revenue in Q3 2024, compared to Intel's $3.3 billion. In comparison, Intel previously generated about $5-$6 billion annually in this segment before facing increased competition.
The increase in AMD's sales in the data center market can be linked to rising demand for efficient yet affordable processors, essential for strengthening data center networks. Intel's Xeon processors have long dominated in server environments, but AMD's EPYC chips are now highly favored due to their lower price and superior efficiency.
Furthermore, AMD's Ryzen line continues to improve, with a focus on the gaming sector. The new Zen 5-based Ryzen 9800X3D CPU, launched on November 7, has demonstrated enhanced performance over its predecessors in both productivity and gaming tasks. Preliminary benchmarks show an 8% uplift in gaming performance compared to the Ryzen 7 7800X3D, along with significant improvements in productivity applications, positioning AMD advantageously across multiple sectors.
As data centers continue to expand globally and consumers increasingly seek high-performance, cost-effective processors, AMD appears poised to continue gaining market share at Intel's expense, challenging the long-standing dominance Intel has held in this market.
