AMD chips keep claiming more of the server market
AMD saw another quarter of outstanding growth in sales of its server chips, giving the company its highest single-quarter gain for server CPUs since 2006 and eating into Intel’s most valuable market segment, according to the latest market report from Mercury Research.
We’ll get to the desktop segment later, but AMD’s server CPU share grew 1.8 percentage points from Q4 2020 to Q1 2021, from 7.1% to 8.9%. That is astonishing as server numbers just don’t move like that so quickly. In the same single-quarter period, Intel slipped 1.8 percentage points, from 92.9% to 91.1%.
There is seasonality in the server market, where it is normal for sales to go down in Q1, Dean McCarron, president of Mercury Research, told me. Cloud-server companies like AWS and Google go through a build/burn cycle where they buy a lot, then take time to deploy it all. Right now we are at the very bottom of build cycle where they buy the least amount, so if they are putting up these kinds of numbers during a low point, it will be even better when they start buying again.