Sales of amd epyc will increase in Q3 2019, but the market is in decline
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AMD enters an exciting time within its data center segment. The new 7nm EPYC processors based on the Zen 2 architecture will go on sale later this year and the sentiments are positive to steal some of the pie from Intel.
AMD EPYC sales will increase in Q3 2019
Both sales and participation, compared to Intel, will increase in the third quarter of this year for the EPYC platform, but AMD has already recognized that sales in the first half of this year are being low.
While Digitimes doesn't specifically explain why, it does mention that the server market is generally not working very well right now, and that this could have an effect on AMD's sales.
In the first quarter of 2019, revenue for the Intel Cloud Computing business group fell 6.3% year-on-year, while revenue from companies and governments even fell as much as 21%.
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As providers in the cloud computing data center segment continue to clean up their inventory, and trade tensions between the United States and China have created uncertainties, demand for data center servers has been declining since early 2019 and It can cause Intel's data center business group to suffer its first annual revenue drop in 10 years in 2019.
In addition to Intel, Nvidia, Xilinx, and Texas Instruments (TI) are also conservative regarding the demand for cloud computing servers in 2019. Nvidia has seen sales for two consecutive quarters of its server GPU products decrease and expects that demand weakens until mid-2019. Nvidia's order visibility remains weak. US sanctions Against Huawei they have also undermined the revenue from Intel and Nvidia servers, as both have been major suppliers to the China-based company. China reportedly plans to boycott the products of US-based chip providers, including Intel. China has contributed about a quarter of the revenue for Intel's data center business group.
This could end up affecting AMD and the launch of its new EPYC 'Rome' generation to be launched in the third quarter. Therefore, everything is total uncertainty at this time in the data center segment.
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