Speaking at the Bank of America Securities Global Technology Conference, CFO Devinder Kumar shared AMD’s expectations from the upcoming Zen 3 based Milan server processors, including the launch timeline and market growth. As far as the former is concerned, it’s almost a certainty at this point that the 3rd Gen Milan server processors will land in the fourth quarter of 2020. Based on the Zen 3 architecture, these chips are expected to come with a sizeable IPC boost, better single-threaded performance, enhanced SMT capabilities, and higher clock speeds, thanks to the more mature 7nm+ process.
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As far as the mainstream Ryzen 4000 desktop processors are concerned, we have it on good authority that they’ll be delayed, with launch now expected in Q1 2021. The gulf should be wonderfully filled by the Ryzen 3000 refresh, featuring notably higher boost clocks and overclocking capabilities than the vanilla Matisse parts.
You know, Milan is doing well in the labs, and we should start shipping in Q4. And as far as the server business is concerned and future share gains, you know, I truly believe that with Milan coming to the fall, 2020 is an inflection year for the server business. Milan allows us to go into the bulk and almost all of the server space, and that is going to be important because as you look at the sizing of the future server business as we laid out in our financial analysts a couple of months ago, we did say that the data center business will grow to upwards of 30% of overall AMD, which we also have projected to grow at a 20% compound annual growth rate over the next three to four years.
So, while the data center business today is in the mid-teens overall, but with Milan and then the follow on products that we have, we think we can get that to about 30% of AMD’s revenue over the next three to four years. Back to you Vivek.Devinder Kumar, AMD CFO
When asked about the company’s long-term expectations from the Data Center market, Kumar was very optimistic claiming that it’s on track to grow to upwards of 30% of overall AMD. Considering that just a few years back AMD didn’t exist in the server market, the forecasted CAG of 20% over the next 3-4 years is especially impressive for the Data Center segment.
At present (Q4 2019), AMD’s desktop share accounts for 18% of the total market and the notebook space is responsible for 16%. The server market is still an Intel-dominated space with AMD accounting for less than 5% of the overall segment. Considering these figures, one can understand why AMD is focusing so much on the Data Center market. After all, it is manifold larger than the PC space.