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AMD does not believe Intel will increase competition in the server segment this year
In the head of industry analysts are still fresh statements by Intel management, which concern the strengthening of competition in the coming year. AMD CEO Lisa Su believes that the competitive environment in the server segment will be normal, and the average selling price of processors will remain at the same level compared to last year.
Image source: AMD
At the quarterly reporting event, AMD representatives once again recalled that large customers receive 7nm EPYC processors of the Milan generation with Zen 3 architecture from last quarter, and their formal announcement to the general public will take place before the end of this quarter. At the moment, Lisa Su considers the competitive environment to be quite competitive, but sees no prerequisites for increased competition this year. According to her, everything will be “as usual” in the server segment.
Analysts invited to the conference mentioned a decrease in the average selling price of Intel server processors, which indicates the company’s willingness to compete with AMD on price. Lisa Su objected that AMD has never set itself the goal of competing due to low selling prices for processors, in the server segment, both total operating costs and the ratio of price, functionality and performance are more important for customers.
Milan’s server processors are, according to AMD CEO, the company’s most balanced product in the segment. They are equally good for both the corporate sector and the cloud applications. This year, the bulk of AMD server processors will continue to be purchased by cloud market players, so the average selling price of EPYC will not change much.
At the quarterly event, it was noted that AMD’s server revenue reached approximately 19% of total revenue, reflecting the growing impact of server products on the company’s business. GPUs for server use have little effect on revenue, but AMD does not set any overly ambitious goals in this sense. Expansion of CDNA architecture and beyond should be carried out in stages.