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Viewpoint: Intel’s data center clients might be ‘absorbing,’ but AMD’s

While Intel Corp. states data-center consumers are “digesting,” they seem to still be bellying up to a longtime competitor’s buffet.

Advanced Micro Devices Inc.’s server-chip sales are not having any of the issues that its huge competing gone over recently (when Intel said data-center sales visited 20%) leaving investors with the obvious conclusion: AMD AMD, -0.23% needs to be taking some market share far from Intel INTC, -1.34% in the sought after data-center company. AMD reported record quarterly sales Tuesday afternoon, and President Lisa Su revealed that data-center sales had actually doubled from the same time in 2015.

AMD executives and financiers have actually long dreamed of again ending up being a genuine rival to Intel in the server and data-center market, and Su appears to have made that dream come to life. Its Epyc line of server chips experienced massive sales growth in the very first quarter that Intel’s Xeon did not. Regrettably, AMD again prevented supplying raw sales figures to evaluate, but a minimum of Su gave a qualitative procedure separate from the also-booming semi-custom business, which provides chips for both of the new video gaming consoles on the market.

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” Based upon both AMD and Intel’s incomes reports, I do think that AMD took a little bit of server share from Intel,” said Patrick Moorhead, principal analyst at Moor Insights and Technique. “AMD regrettably does not report Epyc profits and blends with semi-custom, but I do believe Epyc grew revenue while Xeon profits declined.”

AMD also thinks that momentum in information center will continue. Executives added more than $1 billion to their annual income assistance, and stated sales in the present quarter would grow by more than 85%. One analyst, Vivek Arya with BankofAmerica Securities, asked where AMD gets that self-confidence, opening Su up for a dig at Intel.

” Might you provide us some sense of what has changed in the last three months, since your rival was just recently talking about cloud digestion, and you’re raising assistance by $1.3 billion,” Arya asked.

” I think we saw in fact strong signals in the very first quarter that it would be a strong data-center year for us,” Su stated. “The supply chain has actually been tight general for the semiconductor industry, and we’ve been working very carefully with our supply-chain partners and so we also have excellent presence to extra supply as we go throughout the year.”

While decreasing to call out the larger competitor that for years has foiled her predecessors’ efforts to compete with it, Su still said what she required to– while Intel might face a need issue for its server chips, AMD is just concerned about supply as it enters what she called a “high efficiency computing mega cycle.” That fact alone must suffice to provide executives at Intel indigestion.

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