AMD is expected to increase its market share close to 40% by the end of 2024 thanks to a diverse range of EPYC CPUs and server products.
AMD's EPYC Push Into Diverse Portfolios Will Help It Get Closer To 40% Server Share Target In The Coming Years
During its recent earnings, AMD's Data Center segment remained flat, earning a net revenue of $1.295 Billion US dollars compared to $1.293 Billion US dollars last year. This was considered a huge win compared to Intel which saw its Data Center revenue decline from 39%. Despite a slow market, AMD highlighted strong double-digit growth in cloud sales, the introduction of 28 brand new AMD-powered instances, and overall good traction of its EPYC lineup.
AMD also recently launched its 4th Gen EPYC CPU family, codenamed Genoa, and is ramping up its next families, codenamed Genoa-X, Bergamo, and Siena for launch. This is the broadest EPYC CPU lineup that AMD has ever launched with products aimed at a diverse range of customers. The new and refined product family is expected to push AMD's server share to new heights in the coming quarters.
As of 2022, AMD held a market share close to 20% and retains its second position compared to Intel which stands at 70% though the company has seen its share decline over the last several quarters and has been trying to get it back in the green ever since EPYC launched. The Sapphire Rapids chips were its latest efforts and that would be followed by Emerald Rapids by this year's end.
As analysts from research firm, BRAID, suggest, AMD is on the path of achieving up to 30% market share by the end of 2023 and will eventually get close to 40% by the end of 2025. The 2024 product portfolio's biggest weapon is Siena, a TCO-optimized solution with leading performance per watt & scalability options.
This along with Bergamo, which pushes for extreme cloud native computing and high-end data-centric performance, is going to be a game changer for the company. You can think of Genoa as just a teaser and considering how well Genoa has been doing compared to Intel's new Sapphire Rapids chips, Bergamo, Genoa-X, and Siena are going to further solidify AMD's hold in the server market.
It is expected that the second half of 2023 will mark a major recovery period for the PC market that includes both the server and client sides. This will also affect Intel positively but actual production & supply to meet the growing demand of customers will determine whether AMD claws away market share from Intel or Intel retains its current share hold over the red team.
