For over two decades, Intel dominated the data center CPU market, with its Xeon processors powering the majority of servers worldwide. Just seven years ago, AMD’s market share was in the single digits. But the landscape has now shifted dramatically — AMD’s EPYC processors have not only captured the high-performance server market but also helped AMD outsell Intel in data center revenue for the first time ever, according to data from SemiAnalysis.
💰 AMD’s Revenue Surpasses Intel’s #
In Q3 2024, AMD’s Data Center segment posted $3.549 billion in revenue, beating Intel’s Data Center and AI division, which earned $3.3 billion in the same quarter.
Just two years ago, Intel’s DCAI division regularly brought in $5–6 billion per quarter. However, AMD’s competitive edge with EPYC CPUs has forced Intel to cut prices on Xeon chips to retain customers — squeezing its margins and eroding revenue.
Intel’s most advanced 128-core Xeon 6980P “Granite Rapids” processor sells for $17,800, making it the company’s most expensive standard CPU ever.
In contrast, AMD’s 96-core EPYC 6979P costs around $11,805 — a far better price-performance ratio that appeals to hyperscalers and enterprise buyers alike.
If Intel can improve yields and sustain demand for its Granite Rapids line, its data center sales may recover. But for now, AMD’s momentum is undeniable.
🧠 Nvidia’s Dominance in AI Hardware #
While AMD and Intel each earn between $3–3.5 billion quarterly from data center CPUs, Nvidia continues to dominate the AI hardware landscape.
In Q2 FY2025, Nvidia’s networking product revenue reached $3.668 billion, and its GPU sales for data center and AI workloads hit a staggering $22.604 billion.
Altogether, Nvidia sold nearly $42 billion worth of AI and HPC chips in the first half of the year — dwarfing the combined data center revenues of both Intel and AMD.
📊 Key Trends in Market Share and Earnings #
The reversal of fortunes between Intel and AMD is striking.
Intel’s market capitalization has fallen to around $96 billion, while AMD’s has risen to $248 billion.
This change reflects not only performance in the data center market but also investor confidence in AMD’s role in the AI era.
According to Mercury Research, AMD’s x86 server market share reached 24.1% in Q2 2024 — up from 18.6% a year earlier. Intel’s share, meanwhile, dropped from 81.4% to 75.9%.
AMD’s EPYC chips have gained significant adoption among hyperscale cloud providers, while enterprise customers — once Intel’s stronghold — are increasingly shifting to AMD.
Analysts such as Christopher Rolland (Susquehanna Financial) and Kevin Krewell (Tirias Research) highlight EPYC’s superior performance-per-dollar and energy efficiency as key factors driving adoption.
📉 Intel’s Challenges and Restructuring #
Intel is facing headwinds across multiple fronts.
Revenue from its data center business is expected to decline 15.2% to $3.4 billion, nearly 54% below its 2021 peak of $7.3 billion.
To combat losses, Intel has initiated a $10 billion cost-cutting plan and plans to lay off 15,000 employees while exploring partnerships and possible asset sales — including talks with TSMC and Qualcomm.
Analyst Stacy Rasgon of Bernstein Research warns that Intel’s problems could persist for some time, noting that the entire x86 server market is under pressure as AI-focused spending shifts away from CPUs toward Nvidia’s accelerators.
🧩 The AI Shift and Future Outlook #
Both Intel and AMD are investing heavily in AI chip development, but AMD appears to be ahead.
AMD projects that its MI300 series AI accelerators will generate $4.5 billion in revenue this year, with even stronger performance expected in 2025.
Intel’s Gaudi 3 AI accelerator, launched in September, has yet to gain major traction — with projected 2024 revenue of only $500 million.
Analysts expect Nvidia’s data center revenue to reach $28.9 billion in the October quarter alone — surpassing the combined earnings of Intel and AMD.
Despite AI reshaping industry priorities, AMD’s expanding data center footprint provides crucial stability amid a soft PC market and ongoing AI competition.
The current quarter serves as a powerful illustration: after two decades of Intel dominance, AMD has finally taken the lead in one of the most strategically important markets in modern computing.