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AMD Reportedly Targeting 10% Market Share In Server Processors

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AMD Reportedly Targeting 10% Market Share In Server Processors

Notwithstanding sell-side calls for an imminent meltdown, Advanced Micro Devices, Inc. (NASDAQ: AMD) shares have continued to push higher and are trading off a multiyear high of $41.79 reached Nov. 19.

Epic Breakthrough With EPYC 2

In addition to making strong inroads in the desktop CPU market, AMD is also making its presence felt in the sever processor market, according to comments made by Ruth Cotter, AMD's senior vice president of worldwide marketing, at the UBS Global Tech conference, Wccftech reported.

"Our goal is to get 10% server share by Q2 2020 with 2nd gen EPYC CPUs and to surpass historical levels in both server and desktop shipments," Cotter reportedly said. 

AMD first introduced the EPYC server processors in June 2017, based on the Zen microarchitecture. The company followed up with the introduction of second-generation EPYC processors in August 2019.

AMD Clawing Back To Past Glory

AMD has a 7% share of the server processor market, a far cry from the 26% share it held in mid-2006 following the launch of its Opteron processors, according to Wccftech.

With the target of hitting a double-digit market share by the second quarter of 2020, the company has trained its eyes on eventually breaking above the previous high.

Intel Corporation (NASDAQ: INTC) is the market leader in a duopolistic market, with a 93% stake.

AMD is geared up to pose tough competition with its new lineup of EPYC processors, which have been embraced by big cloud customers such as Microsoft Corporation's (NASDAQ: MSFT) Azure and Amazon.com, Inc.'s (NASDAQ: AMZN) AWS.

Intel is also helping AMD's cause, given the issues with its 14nm processors.

AMD shares were up 1.34% at $39.45 at the time of publication Tuesday. 

Related Links:

Nomura: AMD's Upcoming Products Can Drive Revenue Momentum, Operating Leverage

Analysts Impressed With AMD's Execution, Pipeline Following Solid Q1 Results

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