AMD (NASDAQ:AMD) continues to gain ground in the server market at the expense of its main competitor, Intel (NASDAQ:INTC), according to a recent report from Jefferies.
The firm said that in June, AMD's server CPU instance share increased by 20 basis points (bps) month-over-month, reaching 21.2%.
Analysts added that this marks the fourth consecutive month of accelerating share gains for AMD, driven largely by the success of its EPYC Genoa processors and renewed interest in its older generation chips such as Milan, Rome, and Naples.
Jefferies analysts highlighted that AMD's momentum in the server market is not an isolated event but part of a consistent trend. The company has seen its incremental share of server CPU instances on a six-month rolling basis outpace its total market share, reflecting strong ongoing demand.
"Incremental share gains at AMD continue to be driven by EPYC Genoa, with support from rebounding growth in AMD’s older gen processors," Jefferies noted.
Meanwhile, analysts believe that Intel's position in the server market continues to weaken.
Intel's server instance share is said to have declined by 30 bps in June, bringing its total share down to 69.2%. This marks the 12th consecutive month of flat or declining share for Intel and the 40th consecutive month where Intel’s six-month rolling incremental share has been below its current total share.
Jefferies pointed out that Intel's share losses have been accelerating over the past four months, despite contributions from newer processors like Sapphire Rapids and Emerald Rapids.
In addition to its server market gains, AMD also saw a small uptick in AI instances, capturing 13% of new AI instance adds in June, significantly higher than its overall share of 1.4%.