AMD’s Q3 results increased our conviction that AMD will take meaningful share from Intel in the next few years.
AMD’s current server CPU business is primarily from cloud customers, and the business more than doubled from a year ago. Compared to Intel’s 20% decline in the cloud segment, it is clear the market share gain is accelerating. AMD is also aggressively pushing the third generation EPYC Milan in the enterprise segment by working more closely with the OEMs. We expect Intel’s enterprise segment will start to face similar share loss from now on.
“Enterprise growth was particularly strong in the quarter as the more than 100 third-gen EPYC processor platforms from Dell, HPE, Lenovo, Supermicro, Cisco and others ramp into broader end customer deployments.” -- Lisa Su, CEO of AMD
On a separate note, Intel is making a very aggressive move to build leading-edge semiconductor manufacturing facilities in the US. It is a risky bet with tens of billions of Capex on the line, and Intel thinks it can pull it off. Morris Chang, the founder of the most powerful foundry in the world, thinks otherwise. When asked about it at a conference in Taiwan, Morris Chang stated Intel’s ambitious plan is more about securing government funding and has little chance of commercial success due to lack of supply chain and higher cost.
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