According to The Next Platform and data from market research firm Mercury Research, the x86 server CPU market showed divergent growth trends for Intel and AMD in Q3 2024.
Intel shipped 4.09 million x86 server CPUs in Q3, marking a year-over-year (YoY) increase of 15.3% and a quarter-over-quarter (QoQ) growth of 9.8%. Meanwhile, AMD leveraged its continuously optimized EPYC CPUs to achieve a 20.7% YoY revenue growth, reaching $1.8 billion. Despite AMD’s gains, Intel still supplies three-quarters of the x86 server CPUs used by global data centers.
The x86 server market as a whole also showed signs of recovery. Gartner reported that in Q3 2024, x86 server shipments grew 15.1% YoY, with sales revenue up 13.9%, driven by increased demand for AI computing.
Intel vs. AMD: Closing the Gap in Shipments and Revenue
Intel, a long-standing leader in the server CPU market, is seeing stronger competition from AMD. While Intel still dominates in terms of market share, AMD is making steady progress with a competitive pricing strategy and a focus on enterprise customers.
According to data from Q3 2024, while AMD demonstrated strong performance in revenue and market share, Intel remains the dominant player. Mercury Research reports that Intel's Xeon series CPUs still account for the majority of the server market, with shipments increasing by 15.3% year-over-year. However, Intel's revenue declined by 1.4% YoY, primarily due to lower profit margins and a less flexible pricing strategy.
In contrast, AMD's EPYC CPUs saw a 14.4% YoY increase in shipments and a 20.7% revenue growth, reaching $1.8 billion. This indicates that AMD has gained further market recognition for its cost-effectiveness and customizable solutions, especially among enterprise customers, where the potential of EPYC CPUs is particularly evident.
1, Shipment Comparison: Intel Recovers from a Slump, AMD Maintains Growth
▲ Latest Shipment Data for AMD and Intel x86 Server CPUs (Source: Mercury Research)
In Q3 2024, Intel shipped 4.09 million x86 server CPUs, a year-over-year (YoY) increase of 15.3% and a quarter-over-quarter (QoQ) growth of 9.8%. Compared to 3.55 million units shipped in Q3 2023, Intel's shipments have significantly rebounded. This recovery was driven by the strong performance of its "Granite Rapids" and "Sierra Forest" Xeon CPUs, indicating that Intel has gradually recovered from its market slump and returned to a higher shipment level.
At the same time, AMD also experienced continued shipment growth, though at a slightly slower pace than Intel. According to Mercury Research, AMD shipped 1.39 million EPYC CPUs in Q3 2024, a YoY increase of 14.4% and a QoQ growth of 7.1%. The total x86 server CPU shipments reached 5.48 million units, reflecting a 15.1% YoY growth and a 9.1% QoQ increase.
Revenue Trends Comparison: AMD EPYC CPUs Shine Among Enterprise Customers
While Intel maintains its lead in shipment volume, it has struggled to achieve similar growth in revenue. According to Mercury Research, Intel's Xeon server CPU revenue decreased by 1.4% year-over-year (YoY) in Q3 2024, dropping to $3.51 billion. However, it saw a quarter-over-quarter (QoQ) increase of 6.9%, aligning with the overall growth trend in the x86 server market.
In contrast, AMD's EPYC CPU revenue showed significant growth, reaching $1.8 billion—a YoY increase of 20.7% and a QoQ rise of 6.9%. AMD's market share improved compared to last year, with particularly strong performance among enterprise customers. Unlike hyperscale cloud clients who often receive discounts, enterprise customers typically pay full price for EPYC CPUs, contributing to an effective boost in AMD's profit margins.
▲ Changes in x86 Server CPU Revenue Over Time (Source: Mercury Research)
AI Drives Server Market Growth: Q3 Shipments Reach 3 Million Units
In the server market, while Q3 2024 x86 server shipments showed a recovery trend, the growth remains cautious compared to previous periods of decline.
According to Gartner, global x86 server sales in Q2 2024 amounted to $38.7 billion, with 2.72 million units shipped. Projections for Q3 2024 indicate x86 server shipments will reach 3 million units, with total sales rising to $42.2 billion—a year-over-year increase of 13.9%.
▲2002Q1-2024Q3 x86 server shipments and revenue changes (Source: Mercury Research)
AI-Driven Competition in the Server Market
Market data from Q3 2024 shows that while Intel continues to lead in shipment volume, its revenue experienced a slight decline, indicating challenges to its market competitiveness. In contrast, AMD has achieved steady growth in both revenue and market share, driven by its continually optimized EPYC CPUs and more competitive pricing strategy.
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