Although Intel’s server chips will be launched next year, industry experts opine that machine learning features along with better memory management techniques could provide Intel the edge. Having said that, competition in the server chip space is always good since it lowers cost and improves efficiency.
On Thursday, Advanced Micro Devices Inc stated, following the release of its second generation processors for data centers, it has landed customers such as Twitter Inc and Alphabet Inc’ Google.
Much like its rival Intel, AMD’s bottom lines depend on chips sold for data centers. Chips for personal computers are no more its growth engine given the slack in the market since users have shifted to mobile devices.
AMD’s latest server chip, EPYC, uses a new chip-making technology from its contract manufacturers that helps the chips have better performance while consuming less power. Since Intel is behind schedule on delivering chips, which it plans on releasing next year, AMD has stolen a march and has courted some of Intel’s biggest customers, including Google.
AMD’s second-generation EPYC server chips, are now being used in Google’s internal data centers. This assumes significance since this is the first time that Google has publicly acknowledged that it is using AMD’s EPYC chips.
With the news reaching the market, shares of Intel were down by 0.6% to $46.42 while shares of AMD were up by 0.3% to $29.30.
AMD is making inroads in the server chips market. According to Patrick Moorhead, founder of Moor Insights & Strategy, AMD had taken an estimated “low single-digit” market share from Intel with the first generation of EPYC server chips; he expects AMD’s growth in market share to expand with its second generation server chips.
In terms of pure performance, AMD’s new chips are better than Intel’s chips at some types of computing work. However, a new feature in Intel chips which enables fast machine learning along with Intel’s memory management technology could be the clinching factor for customers such as Germany’s SAP SE.
In a research note, Moorhead stated, most large business he talks to “wants more competition in the space to accelerate innovation and lower costs. With that said, none of these customers would adopt AMD if it didn’t have some advantages.”