Sales of semiconductors in general and computers in particular are returning to growth, and new data from analysts at Mercury Research shows that AMD will be one of the main beneficiaries of the market recovery. The company’s success ensures high demand for Ryzen 7000 and 4th generation EPYC processors. AMD itself shared data from Mercury Research.
In the client processor segment in the fourth quarter of 2023, AMD increased its share by 3.1 percentage points (pp.) in quantitative terms compared to last year to 20.1% of the market. In terms of revenue, annual growth amounted to 2 percentage points. — in the last quarter of last year, AMD received 15.4% of the revenue of the entire client CPU market.
Moreover, in the desktop processor market, AMD’s share in unit terms was 19.8% – this is the maximum since the second quarter of 2022, and also close to the mid-2020 levels. In the mobile segment, AMD’s share in unit terms was 20.2%, which is also the maximum since mid-2022.
As you know, last year was very difficult for the PC market. However, recent data from various segments, such as memory manufacturers, makes it clear that the market is optimistic about 2024. Let us remind you that this year should be the year of PCs with artificial intelligence; in addition, the appearance of Windows 12 promises to fuel interest in buying new PCs. If this happens, users and businesses will be interested in new systems and processors with built-in AI engines.
AMD’s server business is doing even better than its client business, thanks to the latest generation of EPYC processors. AMD emphasizes that its revenue share in the server CPU market is 31.1%, which is a record for the company. Over the year, the company’s share in monetary terms increased by 4.0 percentage points, which brought record profits in this segment.
In quantitative terms, AMD’s growth in the server processor segment was even higher than in monetary terms – the company added 5.5 percentage points. compared to the fourth quarter of 2022. As a result, AMD now occupies 23.1% of the market. AMD emphasizes that the slight decrease in share in the fourth quarter compared to the third “reflects higher numbers of our competitors’ server processors sold in non-data center applications and higher Atom shipments” The unnamed competitor is, of course, Intel.
Let us recall that 2023 as a whole was not a very successful year for Intel, but in the last quarter of the year things began to improve. In contrast, AMD’s data center business declined 10% year-over-year, partly due to a contraction in the overall market and inventory adjustments.