NVIDIA's Vera Chip Threatens AMD's Server CPU Streak
AMD's dominance in server CPUs may be threatened by a quiet structural shift in the cloud. The company just posted its fifth straight record quarter for server CPUs, but a new chip from NVIDIA could change the game. The upcoming Vera CPU is an Arm-based processor that will put pressure on AMD's x86 franchise.
NVIDIA's Data Center revenue hit $89.02B, up 117% year-over-year, and their Trailing 12-month Grace CPU revenue exceeded $5 billion. Meanwhile, AMD's Data Center revenue reached $6.72B, up 107% YoY, but the company still trails behind in terms of server CPU sales.
The reason for this disparity is that cloud giants are building their own Arm chips, which puts pressure on AMD's x86 processors. NVIDIA's Vera CPU uses Arm architecture and will be used by Amazon (NASDAQ:AMZN) in its AWS service. This move could lead to increased adoption of Arm-based processors in the cloud.
The upcoming Venice Cloud from AMD may help settle the CPU fight, but it remains to be seen whether hyperscalers will add instance types or move workloads to their own chips. If NVIDIA's Vera CPU gains traction, it could cap AMD's streak and put pressure on the company's x86 franchise.