Opinion: Intel’s data center customers may be ‘digesting’, but AMD’s buffet is wide open

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While Intel Corp. says data center customers are “digesting,” it appears they are still scoffing at the buffet of a longtime rival. Advanced Micro Devices Inc.’s server chip sales don’t have any of the problems its big rival discussed last week (when Intel said data center sales fell 20%), leaving investors with The obvious conclusion: AMD AMD, -0.23% should take market share from Intel INTC, -1.34% in the coveted data center business. AMD reported record quarterly sales Tuesday afternoon, and CEO Lisa Su revealed that data center sales had doubled from the same period last year.

AMD executives and investors have long dreamed of becoming Intel’s legitimate competitor in the server and data center market again, and Su appears to have made that dream come true. Its Epyc line of server chips experienced massive sales growth in the first quarter that Intel’s Xeon did not. Unfortunately, AMD again avoided providing gross sales figures to judge, but at least Su gave a separate qualitative measure of the also booming semi-custom business, which provides chips for the two new game consoles on the market. Also Read: New Intel CEO Has Another Problem To Fix “Based on earnings reports from AMD and Intel, I think AMD took some server stake from Intel,” said Patrick Moorhead, principal analyst at Moor Insights and Strategy. “Unfortunately, AMD does not report Epyc revenue and is bundled with semi-custom, but I think Epyc increased revenue while Xeon revenue decreased.” AMD also believes the momentum in the data center will continue. Executives added more than $ 1 billion to their annual revenue guide, and said sales in the current quarter would grow by more than 85%. One analyst, Vivek Arya of BankofAmerica Securities, asked where AMD gets that trust from, opening Su for a dig at Intel. “Could you give us an idea of ​​what has changed in the last three months, because your competitor was recently talking about cloud digestion and is increasing targeting by $ 1.3 billion,” Arya asked. “I think we saw really strong signals in the first quarter that it would be a strong data center year for us,” Su said. “In general, the supply chain has been tight for the semiconductor industry and we have been working very closely with our supply chain partners, so we also have good visibility of additional supply throughout the year.” . Although he declined to criticize the bigger rival that for years has thwarted his predecessors’ attempts to compete with him, Su still said what he needed: while Intel may face a demand problem for its server chips, AMD only cares. by supply, it already enters what she called a “high-performance computing megacycle.” That fact alone should be enough to give Intel executives indigestion.