2024 has been a standout year for AMD, fueled by its expansive lineup of EPYC and Ryzen CPUs on the x86 architecture and the introduction of its Zen 5 processors. Mercury Research's latest report reveals AMD's impressive growth in revenue and unit share, underscoring its strong performance trajectory.
The report indicates AMD achieved a record 33.9% revenue share in server-related chips in the third quarter of 2024. This reflects a modest increase from the previous quarter and a 2.7% gain compared to the same period last year, per Reuters.
According to EE Times, AMD continues to demonstrate strong momentum in server CPU growth, with incremental market share gains in PCs and other segments, although none as significant as in the server market.
Quick takes
Mercury Research reports AMD capturing 28.7% of the desktop CPU market in the third quarter of 2024—its highest share since late 2016. This represents a substantial increase from 23.0% in the second quarter of 2024, reflecting a 5.7% quarterly and 9.6% annual gain.
AMD also secured a 27.3% revenue share in the desktop segment, marking a 7.7% increase compared to the third quarter of 2023, driven by robust sales of its high-performance 3D V-Cache processors and the Ryzen 9000 series.
In the third quarter of 2024, AMD strengthened its position in the mobile CPU market, capturing a 22.3% market share, up from 20.3% in the second quarter of 2024. Revenue share also grew to 19.2%, fueled by strong consumer demand for Ryzen AI 300-series APUs.
AMD's server market share grew to 24.2%, up from 23.3% compared to the third quarter of 2023, with its server revenue share rising to 33.9% from 31.2% in the same period. The financial report highlights AMD's data center division as a key growth driver, bolstered by increasing AI demand.
Source: Mercury Research & Wccftech, compiled by DIGITIMES, November 2024
AMD vs. Intel
In contrast, Intel recently launched its Core Ultra 200S, but it faced a lukewarm reception as consumer confidence dipped following instability issues with its 13th and 14th Gen processors.
For the first time, AMD's data center revenue surpassed Intel's data center and AI division, reaching US$3.549 billion, just ahead of Intel's US$3.3 billion.
In corporate sales, Intel continues to dominate the desktop and mobile CPU markets, holding 71.3% and 77.7% shares, respectively, according to Yahoo Finance.
Intel's overall desktop market share declined, attributed to inventory adjustments at a key partner, with a recovery expected in the fourth quarter of 2024, per Mercury Research.
AMD's key growth drivers
EETimes notes that AMD's expanding data center portfolio—spanning EPYC processors, Instinct GPUs for AI, and Pensando DPUs—has been a key growth driver. In the third quarter of 2024, AMD's data center revenue set new records, doubling compared to the third quarter of 2023, driven by strong Instinct AI accelerator and EPYC CPU sales.
AMD recently introduced the Instinct MI300X accelerator and its latest fifth-generation EPYC server processors.
This market share includes only sales from AMD's Zen 4-based EPYC processors, such as Genoa, Bergamo, and Siena. With the recent launch of the EPYC 9005 "Turin" series—boasting enhanced performance, TCO benefits, and efficiency—AMD is positioned for further market share and revenue growth in the quarters ahead, Wccftech notes.
In the desktop market, AMD's diverse Ryzen portfolio, from entry-level to high-end, has driven substantial gains, with the Ryzen X3D series leading sales globally. The recent Ryzen 9000 and 9800X3D releases are expected to further boost AMD's unit and revenue share.
In the mobile market, AMD's Ryzen AI 300 APUs combine strong performance with AI and advanced graphics capabilities. The gaming sector, especially handheld devices, has widely adopted these APUs, with a growing number of products featuring the Ryzen AI chips.
Future outlook
AMD has outlined an AI accelerator roadmap through 2026, with the next-gen MI350 series scheduled for release in the second half of 2025, followed by the MI400 series in 2026.
AMD's EPYC series entered the server processor market in 2018 with around 2% market share. By 2020, this grew to roughly 8%, accelerating to 27% in 2022, supported by the fourth-generation EPYC processors.
AMD faces challenges with Ryzen AI chip availability, as only a limited number of laptops with these chips are currently available. As AMD addresses these supply issues, market share is expected to improve. The company is also set to introduce more mobile options for mainstream and high-end markets at CES 2025.
AMD's progress in the x86 segment is impressive, with EPYC and Ryzen contributing significantly to its growth. As Intel falls behind, AMD now has the momentum to pursue its ambitious goal of capturing 50% of the market.
