Why AMD is faring much better than Intel in the same tough economy
Summary
While Intel is expecting declines across the board, AMDs data center business is growing with the introduction of a new chip, and its pandemic-era acquisition of specialty chip-maker Xilinx is also contributing growth. Both companies are facing a slump in PC market, after two years of elevated sales during the Covid pandemic, as people bought new computers to work or go to school from home. Sales for Intels datacenter group fell 33% from the previous year to $4.3 billion, partially because of a late release of its latest server chip family, Sapphire Rapids. AMDs data center business faces tough macroeconomic conditions too, but on Tuesday, Su signaled to investors that its gains would come at Intels expense. Xilinx, which makes processors that perform specialized tasks like encryption or video compression, was the main contributor to $1.4 billion in sales for AMDs embedded division, an annual increase of 1,868%, according to the company.
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