Monday, October 22, 2018 3:31:16 PM
Notes: Chipzilla is a nickname for Intel. My formatting for emphasis.
Chipzilla fears that AMD could carve out a much bigger share of the server chip market. In an interview earlier this year with Instinet analyst Romit Shah, then-Intel CEO Brian Krzanich remarked that his aim was to keep AMD from capturing 15% to 20% of the server market.
The chip giant had also slashed its guidance for server chip sales in the second half of 2018 on account of increased competition. So it shouldn't be long before AMD starts getting substantial revenue from the server market by increasing its share of the pie.
Assuming that AMD manages to corner just 10% of the server processor market, it could pull in more than $1.5 billion in annual revenue from this segment, going by Intel's 2017 sales. But it won't be surprising if AMD goes further, as there was a time when it used to control a quarter of the server processor market when it sold the Opteron chips.
In all, the server processor market has the potential to become a multibillion-dollar business for AMD. However, the company needs to ensure that it keeps winning more share from Intel by landing more customers on the back of solid product-development moves.
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