AMD Market Share Dip in July

Investing.com — Advanced Micro Devices (NASDAQ:AMD) experienced a slight decline in market share for server instances in July, as reported by Jefferies on Thursday.

The report indicates that AMD lost 10 basis points (bps) of its share, while Intel (NASDAQ:INTC) increased its dominance, capturing 72.8% of the market due to the success of its Sapphire Rapids processors and other products.

Jefferies noted that Intel’s Sapphire Rapids processors were particularly effective, contributing to its incremental share gain of 39.1%, up from 18.1% in June.

Furthermore, Jefferies mentioned that other Intel products further enhanced its market position, with an incremental share growth reaching 15.9% in July, a significant improvement from flat performance in June.

In contrast, AMD’s performance was described as “weak vs. INTC” regarding Processor-only incremental share. Despite total processor-only instances growing by 0.6% month-over-month, AMD’s share only rose by 0.2%, notably lower than the 2% growth seen in June.

Consequently, AMD’s total market share dipped slightly from 21.2% in June to 21.1% in July, with particular weaknesses noted in its Genoa processors. Jefferies highlighted the contrast, stating, “Genoa incremental share was 1.2% compared to 12.2% in June, marking its lowest reported data point over the same period.”

Despite challenges in processor instances, AMD did manage to gain 10 bps in AI instances alongside AWS. In comparison, Nvidia (NASDAQ:NVDA) experienced a decline in Dedicated Accelerator instances, losing 10 bps of market share.

Overall, the report suggests that Intel’s momentum, driven by Sapphire Rapids, enabled it to outpace AMD in the server instance market in July, according to Jefferies.