Intel will reduce the price of server chips and become stronger against AMD
The hardware market is quite interesting, not only because of the products that are being developed, but above all because of the competition we see between chip manufacturers.
In turn, in the server market, Intel has felt the pressure of growth from AMD. In this sense, the technological giant will now lower the price of chips for this segment and strengthen its power to become a stronger competitor against Lisa Su's company.
Inter wants to become stronger in the server market
AMD is currently Intel's biggest headache in the processor segment. And when it comes to the server market specifically, Lisa Su's company is getting stronger, which is reflected in AMD's growing share of this sector. As a result, Intel was forced to rethink its strategy to become a stronger rival against this threat.
In this way, Pat Gelsinger's brand will have opted to lower the price of its server chips. According to DigiTimes, you can already find enough processors dedicated to this segment at prices lower than those recommended by Intel.
AMD has some disadvantages...
On the other hand, as highlighted by Tom's Hardware website, AMD has some drawbacks in this race. In other words, the company does not have its own factories for the production of its Zen chips and also has fewer resources than Intel.
However, even so, AMD's market share has grown. The brand indicates that revenues from data center and server products, such as the Epyc CPU, are largely responsible for this increase.
According to data from Puget Systems, a company specializing in computers for servers and data centers, AMD's sales in its store rose from 5% in June 2020 to 60% in June this year. Mercury Research indicates that Lisa Su's company achieved a 9.5% share of the global server CPU market in the second quarter of 2021. This percentage represents an increase of 4% year-over-year, despite being 1% less than the the previous quarter where it reached 10.5%.
Intel already has full control of the production of its chips, due to its factories. But it also has more economic resources than its rival, which allows it this kind of strategy.