July 31, 2006 4:52 PM PDT

AMD nabs 26 percent of server market

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Advanced Micro Devices is still making strides in the server market at Intel's expense as the larger company waits to see if a new processor can reverse its slide.

AMD on Monday said it increased its share of the x86 server processor market to 25.9 percent, a number confirmed by Mercury Research's Dean McCarron, who tracks market share figures. Intel now holds 72.9 percent of the overall market for x86 processors, while AMD has 21.6 percent.

Intel's share decreased from 82.2 percent in the second quarter of 2005, while AMD's increased from 16.2 percent over the same period.

Via Technologies is the third player in the mix with 5.5 percent share during the second quarter of 2006, but that figure was inflated due to end-of-life shipments of the company's C3 processor and will likely fall over the rest of the year, McCarron said.

AMD has been picking away at Intel's server market share for several years based on the superior performance and power consumption of its Opteron processor. But Intel fired back last month with a new Xeon processor based on its Core microarchitecture that appears to be outperforming current Opteron processors on several tasks.

Intel is pinning its hopes of resurrecting its market share--and its stock price--on the new Core generation of processors. The company launched the Core 2 Duo for desktops and notebooks last week during an event at its headquarters, and systems based on the new chips will start appearing over the coming weeks.

CNET News.com's Stephen Shankland contributed to this report.

See more CNET content tagged:
server market, AMD Opteron, AMD, Intel Xeon, Intel

7 comments

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Intel's server mkt share also inflated
If you take out those HP and DELL servers powered by Intel Celeron, Intel's server market share will drop to a much lower figure.
Posted by sharikou (106 comments )
Reply Link Flag
Server Market Share
It does not matter what processors Intel has supplied to the Server Market as long as they are still Intel chips, it is their share of the market. There are also AMD servers using non Opteron chips. While the focus in the market growth is always on the high end, there are going to be low end products sold to fill that need as well.

If Intel ignored this need they would lose even more of the market share to other companies.
Posted by zaznet (1138 comments )
Link Flag
That is...
just a stupid comment. HP and Dell account for 70-80% of the x86 server market. Of that 90+% is Intel.

Take those two players away and you basically take away the x86 market.
Posted by Lindy01 (443 comments )
Link Flag
What?
Celeron servers? Stop smoking so much stuff.

1- I've never seen a Celeron server from any manufacture

2- According to you, the Celeron chip is not made by Intel. This is news to me.
Posted by Gasaraki (183 comments )
Link Flag
Shirakou is also inflated.
I'm surprised Shirakou is still around. This guy is just an AMD lunatic and his blog is full of it.

Any good geek (not amateurs, or employees of AMD or Intel) knows that 2006 is a trifecta year for Intel, and funny enough AMD was caught offguard just like Intel 2 years ago. There is stupidity on both sides of the camp, and that's why history repeats itself.

Besides Sharikou comments, it looks like IBM and AMD are having a marriage of convenience. IBM has a grudge against Intel because of Apple. At the same time IBM is happy that AMD is plunging more into debt by borrowing money for a speedy roadmap implementation (?) and ATI. The banks are very happy with AMD because they know they are going to get their money back one way or another. The more AMD goes into debt, the more attractive they'll be for a corporate takeover. It happened before in 2000 when HP was very tempted to buy AMD out. Thanx to stupid AMD management it looks like IBM could be next in line. A sign of things to come is when you see IBM as a major sales distributor for AMD. Is AMD that incompetent for not having their own sales offices? Or is there a game being played out behind doors? The next few years should be interesting for AMD as we'll see who is pulling the strings.
Personally I think that AMD is a good company. But their management is full of egos and they are very self-absorbed. Anyone remember when AMD recalled 3000 Opterons and do you know how AMD responded to initial complains? Their impolite responses came form the higher management orders, which means the present AMD needs a change of management. Just because you are a chip company, you can't offend the IT dept of another company.
Another problem that AMD now has is "integrity". Hardware review sites are questioning AMDs claims. It took a while for tomshardware, anadtech,hexus, extremetech to realize that the left hand (marketing) of AMD doesn't know what the right hand (engineering) is doing. Can AMD afford to ignore harware review web sites? Ruiz and his executive buddies couldn't care less. Ruiz is just a nut that was an engineer and has no idea what he's doing in running a multi billion dollar company.

The price war between AMD and Intel is only good for the consumer. Both AMD and Intel are going to loose big time. The only difference is that Intel has cash reserves while AMD has a credit card. AMD is almost giving away Opterons just to claim server market. I wished they would give me a couple of them, but since I'm not a corporation, that's just a wishful thinking.

No comments about IBM.
Posted by domino360 (41 comments )
Link Flag
celeron servers???
hey dude, you might consider doing some homework on intel because your facts are just off the charts. if many companies are using celerons in their own servers, then the opposition to that is definetelly the semprom from amd. do companies really use crapy chips? by the way, are you employed by dc comics?

here is something i saw on the internet:

"i thought ill check out the roadmap of both amd and intel.

<a class="jive-link-external" href="http://www.amdcompare.com/prodoutlook/" target="_newWindow">http://www.amdcompare.com/prodoutlook/</a>
<a class="jive-link-external" href="http://www.intel.com/products/roadmap/index.htm" target="_newWindow">http://www.intel.com/products/roadmap/index.htm</a>

to my surprise, there is not much going on with amd. or is there? is that what amd calls a roadmap?

now, we all know that both companies keep a "wild card" as a surprise just in case if one of them steps ahead. we all heard rumors for quad and neither amd or intel even mention that for the near future. so, are both companies venting technology bs for new unexperienced fans?
in time we'll see what happens. since i don't trust marketing people working in the high tech, i'm not betting on either company because i like to read the small print myself."
Posted by anarchy1999 (21 comments )
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