Intel Is Under Attack in the Data Center
Chip giant Intel (NASDAQ: INTC) has been utterly dominant in the world of server CPUs for many years. Even with Advanced Micro Devices (NASDAQ: AMD) finally churning out solid server chips in the form of its EPYC processors, Intel has retained a roughly 94% share of the market. Intel is the king of the data center, and it's been that way for a long time.
Things are now starting to change. On top of AMD's ongoing comeback in the server CPU market, graphics chip developer NVIDIA (NASDAQ: NVDA) agreed to acquire ARM Holdings earlier this year for a whopping $40 billion. While Intel and AMD develop chips based on the x86 instruction set, the standard in both the PC and server markets, chips based on ARM's architecture dominate the mobile device market. Various companies have tried to bring ARM chips to the data center with very limited success.
NVIDIA has a good shot at finally making ARM a first-class citizen in the data center thanks to its already vast business of selling graphics processing units to data center customers. In NVIDIA's most recent quarter, the company's data center segment pulled in $1.75 billion of revenue.
Source Fool.com
