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AMD competes against Intel to provide chips to data centers that power Internet-based services. Both companies have relied on data center chips for growth, as personal computer sales have been stagnant since users moved more toward mobile devices.

On Wednesday it released the second generation of the processor chip for data centers and got Google and Twitter as customers.

AMD's new generation of server chips, called EPYC,uses new chip manufacturing technology from its manufacturers that helps chips perform better by consuming less energy.

Intel, which manufactures chips in its factories instead of relying on contractors, is lagging behind in delivery of chips made with its most recent manufacturing process. He plans to release them next year.

AMD has tried to take advantage of this by courting some of Intel's biggest customers, such as Google managing to place its second-generation EPYC chip server in Google's internal data centers and that Google will offer it to external developers as part of the cloud computing offerings by the end of the year. This is the first time Google has publicly acknowledged the use of AMD's EPYC chips.

 

Intel shares were down 0.6 percent at 46.42 dollars in after-hours trading after AMD customer announcements. Instead, AMD shares were up 0.3 percent at 29.30 Dollars.

Intel, which has stated that both Google and Twitter remain customers, remains the main provider of data center chips, with more than 90% of the market under its control.

But AMD has made inroads with its latest chips. Patrick Moorhead, founder of Moor Insights & Strategy, said he estimates that AMD has taken "a low-digit" market share from Intel with the first generation of EPYC server chips and that he expects that share to expand with the second generation announced on Wednesday.

In terms of performance, Moorhead said the new AMD chips are better than Intel's chips in some types of computing work, but may be slower on others. He said Intel's new chip features for machine learning tasks and Intel's new memory technology with customers like German software company SAP could give Intel an edge in those areas.

Moorhead said in a note that most of the big companies he talks to want more competition in space to accelerate innovation and reduce costs. That said, from our point of view, none of these customers would have adopted AMD if it didn't have significant benefits.