AMD: We have to occupy at least 25% of the server CPU share. 7nm cost has an advantage.
After pushing the third-generation Athlon processor, AMD's share in the desktop X86 market has rebounded rapidly. The statistics show that AMD Q2's quarterly share has exceeded 17% in August. According to the popularity of the 7nm Ruilong processor, it broke 20 in this year. % share is not a problem at all.
For AMD, the desktop CPU market is still a small test, and the more difficult challenges are still behind, including the OEM and server market, especially in the server CPU market, the share of friends in the peak period is as high as 99%, AMD's EPYC Opteron processor to In August, it only accounted for 3.4%.
At Deutsche Bank's Global Technology Conference, AMD CFO Devinder Kumar re-examined AMD's plans for the server CPU market. Previous analysis suggested that AMD would account for 20% of server CPU share by the end of 2020.
AMD certainly won't be satisfied with this. Devinder Kumar believes that 20% is only a milestone in the journey. In the history, AMD's share of the server CPU market has reached 25% to 27%. Their current goal is not lower than the historical highest share. .
In other words, AMD hopes to occupy at least 25% of the share in the next two years, of course, the current state is still a bit different from this share.
However, AMD is very confident about its products. After all, this year they launched the 7nm EPYC second-generation processor, with a maximum of 64 cores and 128 threads. The performance is far superior to the opponent's 28-core processor, and the maximum price is no more than 7,000 US dollars. The 28-core processor can sell for up to $13,000, a huge gap.
Don't worry about AMD's own lack of money. Devinder Kumar said that the gross margin of the 7nm EPYC chip is much higher than the average of the company's products. Some analysts said that the EPYC gross margin exceeded 50% (can imagine how high the opponent's gross profit is. )) Although not 100% accurate, it can be seen that AMD is emboldened in this respect, and the design of chiplets chiplets can actually reduce costs.
Not only that, Devinder Kumar said that server CPU not only depends on the cost of purchase, but the long-term TCO cost is more important. In this regard, EPYC has an advantage.
For AMD, the desktop CPU market is still a small test, and the more difficult challenges are still behind, including the OEM and server market, especially in the server CPU market, the share of friends in the peak period is as high as 99%, AMD's EPYC Opteron processor to In August, it only accounted for 3.4%.
At Deutsche Bank's Global Technology Conference, AMD CFO Devinder Kumar re-examined AMD's plans for the server CPU market. Previous analysis suggested that AMD would account for 20% of server CPU share by the end of 2020.
AMD certainly won't be satisfied with this. Devinder Kumar believes that 20% is only a milestone in the journey. In the history, AMD's share of the server CPU market has reached 25% to 27%. Their current goal is not lower than the historical highest share. .
In other words, AMD hopes to occupy at least 25% of the share in the next two years, of course, the current state is still a bit different from this share.
However, AMD is very confident about its products. After all, this year they launched the 7nm EPYC second-generation processor, with a maximum of 64 cores and 128 threads. The performance is far superior to the opponent's 28-core processor, and the maximum price is no more than 7,000 US dollars. The 28-core processor can sell for up to $13,000, a huge gap.
Don't worry about AMD's own lack of money. Devinder Kumar said that the gross margin of the 7nm EPYC chip is much higher than the average of the company's products. Some analysts said that the EPYC gross margin exceeded 50% (can imagine how high the opponent's gross profit is. )) Although not 100% accurate, it can be seen that AMD is emboldened in this respect, and the design of chiplets chiplets can actually reduce costs.
Not only that, Devinder Kumar said that server CPU not only depends on the cost of purchase, but the long-term TCO cost is more important. In this regard, EPYC has an advantage.