20% market share in server CPUs by 2023

According to the latest reports from Digitimes Research, it is expected let AMD take a major leap in terms of market share in the business of CPU for servers. Specifically, the company is expected grow almost 5% in that business this year. As was logical to expect, the only loser of this market share will intel.

Intel has twice as much troubleand it is that it is not only expected to lose market share compared to AMD, but also Arm will also grow based on reducing Intel’s market share. Specifically, with respect to the year 2020, AMD could arrive to duplicate its market share, while Arm I would triple it.

AMD would achieve a market share in server CPUs of 20.5%, Arm 8.1%

According to these data, AMD is expected to end the year with a market share of 20.5%. This is 4.9 points more than the 15.6% in 2022, and more than double the 10.1% it reaped in 2020. On the other hand, Arm would grow up to a respectable 8.1%, a small growth of 1.3%, but it continues to maintain a very stable growth. In 2020, its share was barely 2.6%, so we are talking about tripling its market share in just 3 years.

It is evident that behind the great growth of AMD is the enormous scaling of cores experienced in the business with its CPUs. AMD EPYC. Intel has been stagnant in this business for years without being able to significantly increase competitiveness in terms of performanceand even less when seeking to speak of energy consumption generated by their processors. While Intel has just announced 60-core CPUs, AMD is already building servers with its new 60-core CPUs. up to 96 cores.

On the opposite side is Arm, which lacks the raw power of x86 cores, but its low energy consumptiontogether with the most advanced manufacturing processes, allows launching servers with hundreds, thousands of cores that, in general terms, add great computing power with low energy consumption. Arm is expected to be the replacement for the x86 architecture, albeit hey, RISC-V it may actually be the successor due to offering more power.

Intel slowly bleeds itself into the server CPU business

Finally, Intel is expected to close this year with a market share of 70.9%. This would represent a big drop from 77% in 2022, which is when the bleed began to get bigger. Proof of this is that in 2020 it had a share of 86.6% and in 2021, it barely fell to 84.7%. Thus, from 2020 to 2023, we are talking about falling 15.7%.

Although not mentioned directly by Digitimes Research, there are other important factors that drove AMD’s server CPU market share gains. Essentially, it is the launch of its new processors without major delays. On the other hand, as Arm CPUs for data centers gain software compatibility with the most popular applications, they will also gain market share. Therefore, only time will tell what market share these processors will control several years from now. According to the Digitimes Research analyst, Arm is expected to play a significant role in the short term.