AMD surpassed Intel in sales in the data center sector for the first time in history.

AMD has managed to surpass Intel in revenue in the data center market for the first time in history, amidst intense competition between the two companies due to the increasing computational demands stemming from new artificial intelligence tools. According to a recent study by SemiAnalysis, AMD's data center segment revenue reached $3.549 billion in the third quarter of 2024, slightly exceeding the $3.3 billion reported by Intel during the same period.

This achievement is significant for AMD, although its total revenue in data centers still lags behind Nvidia's revenue from networking, which leads the artificial intelligence chip market. Nvidia has capitalized on the rising demand in this sector, reaching a market capitalization exceeding $3 trillion, making it one of only three companies to reach this milestone.

Intel's situation is complicated, as it continues to face financial issues despite the well-known reputation of its Xeon processors, which are critical for many servers worldwide. The competitive pressure from AMD, with its EPYC processor line, has intensified Intel's financial difficulties. Notably, AMD's EPYC 6979P processor, with 96 cores, costs approximately $11,800, representing a difference of $6,000 less compared to Intel's Xeon 6980P Granite Rapids, which has 128 cores. This cost factor has influenced the purchasing decisions of data center operators.

Recently, Intel reported quarterly revenues of $13.3 billion, representing a 6% decline from the $14.2 billion reported the previous year. This decline was anticipated, and CEO Pat Gelsinger expressed satisfaction with the company's "solid progress" in improving operational efficiency. For the upcoming quarter, revenue is projected to range between $13.3 billion and $14.3 billion.