**Intel and AMD Boost in Server CPU Demand**
Intel (NASDAQ: INTC) is experiencing a surge in demand for server CPUs, attributed to advancements in artificial intelligence (AI) and growing inference workloads. CEO Lip-Bu Tan revealed that Intel can currently only meet 50% of customer demand for CPUs, indicating potential for increased prices and margins as the market expands. Intel’s Q2 2023 revenue rose 25% year-over-year to $16.1 billion, with a 59% increase from its Data Center and AI segment.
Meanwhile, Advanced Micro Devices (NASDAQ: AMD) expects the total addressable market for server CPUs to grow at over 50% annually, potentially reaching $220 billion by 2030. AMD has recently captured a larger market share, rising to 34.5% in Q2 2023, up from 27.3% the previous year. Analysts predict that AMD could see an 82% increase in earnings this year and a 105% rise in 2027 as it ramps up production to capitalize on supply shortages faced by Intel.
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