Intel's Xeon processors may account for the majority of the data center market, but their operating revenue is struggling to stay positive. Team Blue's third-quarter 2023 data center revenue declined 10% year-over-year, from $4.3 billion in 2022 to $3.8 billion this year. Its operating income increased by 151%, which is quite misleading. From -3% (or -$0.1 billion) in Q3'2022, its data center revenue was +2% or $0.1 billion in Q3 2023.
Meanwhile, AMD reported data center revenue of $1.6 billion last quarter, the same as last year. Operating margins fell 12%, from 31% in 2022 to 19% this year. However, AMD managed to surpass Intel with an operating revenue (or profit) of $306 million, 3 times higher than its rival's data center segment.
Intel has had much more success in the client (PC) market. It raked in $7.9 billion in the third quarter of 2023, roughly the same amount as last year. However, its operating income (profit) increased by 26%, from $1.4 billion in the second quarter of 2022 to $2.1 billion this year.
Conversely, AMD's customer revenue grew 42% year-over-year (from $1 billion to $1.5 billion), but margins remained thin, at just 10% last quarter. Operating income was $140 million, or $0.14 billion, compared to -$26 million the previous year. This is 15 times less than Intel's customer revenue for the third quarter of 2023.
Via: HXL.