Source: Wall Street See
According to Bank of America Merrill Lynch, AMD's CPU sales are expected to achieve a year-on-year growth of 38% in 2024, while Intel's growth rate is only expected to be 2%. By 2025, AMD's revenue share in the PC and server markets is expected to reach 25%, significantly higher than last year's 19%.
As the application of AI continues to deepen, the demand for high-performance chips in the PC and server markets is skyrocketing, and the central processing unit (CPU) market is being taken over by AI chip companies, putting tremendous pressure on traditional chip giants.
According to the latest research reports from Bank of America Merrill Lynch, AMD's performance was particularly eye-catching in the CPU battle in the second quarter of this year, surpassing Intel and becoming the focus of all market. $AMD.US$ $INTC.US$ All market
Bank of America Merrill Lynch analysts Vivek Arya, Duksan Jang, and Michael Mani released a research report on Wednesday stating that in the second quarter of this year, both the PC and server markets had recovered their typical growth trends.
Although PC shipments have declined slightly compared to the previous quarter, year-on-year growth is significant, indicating overall healthy and stable demand in the market.
The server market has also shown positive growth momentum, with a slight year-on-year decline but an increase in the average selling price (ASP), indicating strong demand for high-performance processors in the market.
In this round of CPU competition, AMD has shown strong growth momentum.
According to data from Mercury Research, AMD's CPUs have significantly surpassed Intel's in both PC and server shipments, achieving higher growth in ASP. Specifically:
In the second quarter, AMD's PC unit shipments and ASP both increased by 2% year-on-year, while Intel's decreased by 2% and 3% respectively.
Although server unit shipments decreased by 12% year-on-year, ASP increased by 28% year-on-year. AMD again slightly surpassed Intel in these two indicators.
Bank of America Merrill Lynch predicts that by the end of 2024, AMD's PC market share will slightly increase to 17-18%, while its server market share will significantly increase to 37% in 2026.
The institution also pointed out that AMD's market share is expected to continue to grow until at least 2025, when its revenue share in the PC and server markets will reach 25% overall, a significant leap from 19% in 2023 and 10% in 2020.
The development of AI technology has had a profound impact on the CPU market, as AI applications continue to deepen, so does the demand for chip processing power.
Bank of America Merrill Lynch's research report mentioned that AI has had a positive impact on both CPU shipments and ASP. Especially in the server market, high-core count and higher-end processors are driving market expansion, thereby driving ASP growth.
Data shows that thanks to the increased demand for AI processors in cloud deployments, AMD's CPU shipments in the second quarter increased by 15% year-on-year.
Bank of America Merrill Lynch maintains a buy rating on AMD and a low rating on Intel, expecting AMD's CPU sales to achieve a 38% year-on-year growth in 2024, compared with an expected growth rate of only 2% for Intel.
At the same time, AMD will release the Zen 5 Turin product, which will be the first major server update in two years. Bank of America Merrill Lynch believes that this will further drive AMD's market share increase.
However, the report pointed out that with the rise of Arm-based vendors, the PC and server markets are expected to face more severe competition in the future. The Arm architecture has already achieved great success in the mobile device market with its high energy efficiency and small size, and is now gradually expanding into the server and PC markets, which undoubtedly will bring new competition to the CPU market.
Editor / jayden