AMD breaks Intel’s long-running reign in the data center landscape with $3.549 billion in revenue — but NVIDIA continues to top the charts with AI chips
A report by SemiAnalysis indicates AMD recently ended Intel’s long reign as the top chip brand for data center processors.
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What you need to know
Intel can’t seem to catch a break. In a surprising turn, AMD has toppled Intel’s long reign as the top chip brand for data center processors. Most corporations heavily relied on Intel’s Xeon CPUs to power their servers for the longest time, with AMD stacking miles behind (viaTom’s Hardware).
Recently, corporations have been more inclined to power their sophisticated machines with AMD’s EPYC processors. However, most servers still run on Intel’s Xeon processors. According to a report bySemiAnalysis, AMD’s data center business outsells Intel’s.
For context, AMD reported $3.549 billion in revenue from its data center business in Q3 2024 compared to Intel’s $3.3 billion. While the gap isn’t too significant, AMD still holds the lead. This suggests a shift in consumer interest, giving AMD a competitive advantage over Intel as its advanced EPYC processors gain popularity. It can also be attributed to Intel’s heavy discounts on server chips, which has consequently scaled down its revenue and profit margins.
NVIDIA scales even greater heights with a strong demand for AI chips
NVIDIA’s strategic position in the AI landscape briefly made it the world’s most valuable company, ahead of Apple and Microsoft, with over $3 trillion in market valuation. Last year, the high demand for AI chips also made itthe most profitable chip brand in the world.
More recently, NVIDIA’s market valuation surged due to the rising demand for AI chips. For context, the company’s market cap rose by 9.3%, pushing its valuation to $3.26 trillion.
Interestingly,Microsoft and OpenAI invested $100 billionin a project called Stargate. The data center will help support both companies' AI advances by meeting their high demand for GPUs. The project is expected to launch in 2028 and will reduce the overreliance on NVIDIA for AI chips.
Interestingly,Microsoft and OpenAI invested $100 billionin a project called Stargate. The data center will help support both companies' AI advances by meeting their high demand for GPUs. The project is expected to launch in 2028 and will reduce the overreliance on NVIDIA for AI chips.
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Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You’ll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.
