Profits from AMD’s Epyc DC are already three times those of Intel’s Xeon

Les bénéfices de l'Epyc DC d'AMD sont déjà trois fois plus élevés que ceux du Xeon d'Intel

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.