Intel and AMD Advance Server Fortunes

Intel and AMD both reported financial earnings last week, showing continued demand and growth for server silicon.

Intel on July 26 reported its second quarter fiscal 2018 financial results, with total revenue of $17.0 billion, for a 15 percent year-over-year gain. The Data Center Group within Intel grew even faster, with revenue up by 27 percent to $5.5 billion for the quarter.

Intel reported it is seeing strong growth in both the cloud and comms service providers segments, which now make up two-thirds of its Data Center Group revenue.

"We saw continued broad-based demand strength this quarter, with customer preference for leadership products like Xeon Scalable driving strong mix," Bob Swan, interim Intel CEO, said during his company's earnings call." The cloud business, our largest Data Center segment, grew 41 percent year over year, as hyperscale CapEx expands to handle the explosive need to transmit, store, and analyze data."

AMD

Intel's smaller rival AMD is also growing, reporting its second quarter fiscal 2018 results on July 25. For the quarter, AMD reported revenue of $1.76 billion, for a 53 percent year-over-year gain.

AMD divides its business units different than Intel, but its Enterprise, Embedded and Semi-Custom segment revenue was $670 million, up 37 percent year-over-year, driven by increasing revenue in its server business.

The standout success for AMD's server efforts is the company's EPYC datacenter processor, which was first announced back in June 2017 as part of a focused effort to displace Intel's Xeon.

The EPYC processor has found its way into multiple vendor offerings, including Dell EMC PowerEdge servers, the HPE ProLiant DL325 server and Cisco's UCS. AMD has also seen EPYC find success in the cloud with the China-based cloud platform Tencent, which offers an EPYC processor-based SA1 Cloud instance.

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