Intel’s Xeon processors may account for the majority of the data center market, but its operating income is barely keeping itself positive. Team Blue’s Data Center revenue in Q3 2023 was down 10% YoY, from $4.3 billion in 2022 to $3.8 billion this year. Its operating income was up 151%, which is quite misleading. From -3% (or -$0.1 billion) in Q3’2022, its data center income was +2% or $0.1 billion in the third quarter of 2023.
Meanwhile, AMD racked in a data center revenue of $1.6 billion last quarter, the same as last year. The operating margins were down 12%, from 31% in 2022 to 19% this year. However, it managed to one-up Intel with an operating income (or profit) of $306 million, 3x more than its rival’s data center segment.
Intel was considerably more successful in the client (PC) market. It raked in $7.9 billion in the third quarter of 2023, roughly the same as last year. However, its operating income (profits) were up 26%, from $1.4 billion in Q2’2022 to $2.1 billion this year.
Conversely, AMD’s client revenue was up 42% YoY (from $1 billion to $1.5 billion), but the margins remained slim at just 10% last quarter. The operating income was $140 million or $0.14 billion, up from -$26 million the previous year. That’s 15x less than Intel’s client revenue for Q3’2023.
