AI and high-performance computing (HPC) are pushing Qualcomm and AMD to escalate their challenge against Intel's decades-long dominance. Through technological innovation and focused channel strategies, both companies aim to reshape the competitive dynamics in the PC and server markets.

• AI PC innovation drives market shift

Riding the AI PC wave, Qualcomm has solidified its position in the PC market with its Snapdragon X series processors, part of the growing Windows-on-Arm (WoA) ecosystem. Since launching Copilot+ AI-enabled PCs in June 2024, Qualcomm has directly challenged x86 leaders Intel and AMD, while emerging as a key competitor to Apple's Arm-based processors.

To expand its global footprint, Qualcomm is recruiting top marketing and distribution talent across North America, Europe (including the UK), and Asia. High-profile roles, such as "Principal Enterprise Architect," aim to strengthen partner ecosystems to optimize channel collaboration.

At Investor Day 2024, Qualcomm announced plans to grow QCT revenue from US$8.3 billion in 2024 to US$22 billion by 2029. Within this projection, the IoT-focused PC segment is expected to contribute US$4 billion, reflecting Qualcomm's aggressive market ambitions.

Qualcomm CEO Cristiano Amon emphasized the critical role of a global retail and commercial network in the Snapdragon X platform's success. Alex Katouzian, GM of the Mobile, Compute, and XR (MCX) Business Unit, highlighted partnerships with 40 leading channel partners, including Insight Enterprises, which trained 500 sales representatives to engage with over 2,000 corporate clients.

• Data center strategy drives AMD's expansion

AMD is ramping up efforts to challenge Intel's data center dominance. According to Dan McNamara, SVP of the Server Business Unit, AMD is extending its reach into enterprise, mid-market, and SMB sectors through a more refined channel strategy.

McNamara detailed AMD's Epyc strategy, starting with demanding workloads like EDA software and vertical applications, before expanding to general IT use. This plan has increased market share and solidified AMD's strength in HPC and AI clusters.

Mercury Research reports that AMD's x86 server CPU market share reached 24.2% after the 2022 release of its 4th-generation Epyc processors (Genoa), approaching its 2006 record of 26.2%. With the launch of the 5th-generation Epyc processors (Turin) in 2024, McNamara emphasized their superior performance, energy efficiency, and total cost of ownership (TCO), particularly for enterprises requiring vertical scaling.

• AI acceleration reshapes competition

The rise of AI adoption is fueling demand for GPUs and accelerators, with Qualcomm and AMD showcasing unique strengths. Qualcomm's Snapdragon X series incorporates AI functionality into PC platforms, while AMD uses its Instinct product line and Epyc CPUs to solidify its position in HPC and support AI clusters effectively.

According to CRN, an HPC system integrator observed that AMD's CPUs, complementing Nvidia's GPU systems, have experienced significant demand. Delays in Intel's third-generation Xeon processors further opened opportunities for AMD to expand its market share.

• Market strategies align for growth

Both Qualcomm and AMD target high-performance vertical markets, starting with high-end clients before expanding into mid-tier and SMB sectors. This phased approach reduces risk while driving sustainable market share growth.

Qualcomm and AMD rely on global channel partnerships, focusing on market education through sales training and proof-of-concept (POC) initiatives to showcase product value and drive adoption.

While both challenge Intel, Qualcomm, and AMD pursue complementary strategies: Qualcomm emphasizes Arm-based energy-efficient PCs, while AMD targets server efficiency and enterprise applications. This synergy positions them as both rivals and collaborators in HPC and AI solutions.

• Market outlook and strategic initiatives

Qualcomm and AMD are demonstrating bold ambitions through strategic advancements. Qualcomm plans to shift 30-50% of notebook market share to non-x86 platforms within five years. CRN notes that Qualcomm's collaboration with 40 channel partners is only the starting point, with deeper engagement planned for mid-tier and SMB markets.

AMD continues to grow its server market share, leveraging AI technologies to enhance its competitive position. As the market evolves, the combined efforts of Qualcomm and AMD are set to challenge Intel's dominance while fostering innovation and competition in the PC and server sectors.