AMD has achieved notable success this quarter, increasing its desktop CPU market share to 28.7%. This is the largest gain the company has made since 2016, with the share up by 5.7% from the last quarter and 9.6% since the previous year, according to Mercury Research. The chipmaker's revenue share for desktop processors also rose to 27.3%, reflecting strong sales, particularly with their high-performance models, including the new Ryzen 9000 series and 3D V-Cache processors.
This surge for AMD has coincided with some turbulence for Intel, which reported some inventory adjustments affecting their performance. Intel still commands the majority of the market, holding 71.3% of desktop CPU sales. Despite this, the reported issues with Intel's Raptor Lake processors have led to negative press and instability issues, giving AMD the opportunity to capitalize.
Beyond desktop CPUs, AMD also noted improvements in the mobile processor market, where it secured 22.3% of the market share, which reflects growth from the previous quarter. Their latest Ryzen AI 300-series APUs have contributed significantly to this market expansion.
Looking at the server segment, AMD has also seen its numbers rise, claiming 24.2% of the server market, up from 23.3% year-over-year. More impressively, their revenue share from servers climbed to 33.9%, showing their ability to sell higher-end server chips, with their data center segment raking in $3.549 billion compared to Intel’s $3.3 billion for the same period.
This positive trend is remarkable for AMD, especially considering the competitive environment, as Intel maintains the largest market share across several categories. Still, many analysts expect this competitive push from AMD could pressure Intel to ramp up its game. Information from industry sources hints at Intel scheduling inventory corrections, which could possibly lead to market share recovery later this year.
With AMD launching new technology and effectively addressing consumer needs through performance enhancements, the company is positioning itself as more than just an alternative. Nonetheless, the reliance on AMD's recent momentum raises questions about sustainability and future competition, especially if Intel can stabilize its production and product lines.
Meanwhile, Nvidia is reportedly eyeing the consumer CPU space, which could shake things up even more. A recent report suggests Nvidia might announce Arm-based CPUs by September 2025, with expectations for their launch by March 2026. This development could challenge both AMD and Intel, especially since Nvidia already holds strong recognition within the PC community with their graphics cards.
Intel has established itself as the largest player not just by volume but also through its extensive product lineup and corporate ties, particularly within corporate settings. The company is, for now, still considered the go-to for many enterprise solutions, but AMD's advancements cannot be overlooked as they continue to innovate.
Given the recent developments and AMD’s growing presence, observers are curious how each company will respond moving forward. With technological advancements and shifts happening rapidly, particularly from major players like Nvidia potentially entering the CPU arena, the end of 2024 certainly promises to be interesting for stakeholders across the tech industry.