AMD and ARM continue to gain CPU market share against Intel - BofA

Investing.com -- Advanced Micro Devices (NASDAQ:AMD) and ARM-based processors continued to gain market share against Intel (NASDAQ:INTC) across all segments during the second quarter of 2025, according to a Bank of America review.

In the PC market, overall CPU units increased 1% quarter-over-quarter and 6% year-over-year following a seasonally weak first quarter. Intel shipments rose 2% quarter-over-quarter while AMD increased 1%, but ARM-based shipments declined 4%.

Intel gained modest notebook unit share in Q2, up 230 basis points quarter-over-quarter, but continued losing desktop unit share, down 390 basis points as the company lacks competitive offerings against AMD’s refreshed Ryzen 9000 series.

Average selling prices (ASPs) showed Intel modestly recovering with a 1% increase quarter-over-quarter, but significantly underperforming AMD’s 9% ASP growth. This pricing disparity contributed to Intel’s PC value share declining another 60 basis points quarter-over-quarter to 64.1%, representing a substantial 1,050 basis point drop year-over-year.

In the server segment, overall units increased 2% quarter-over-quarter with Intel flat, AMD up 1%, and ARM processors showing strong growth at 15%. ASP trends were mixed among x86 vendors with Intel down 1% quarter-over-quarter while AMD gained 5% as it began ramping its new Zen 5 Turin products with higher core counts.

AMD’s CPU revenue share reached 29.5% in Q2, up 120 basis points quarter-over-quarter, extending its 300 basis point gain in 2024. Bank of America expects AMD to reach 30% value share in 2026 and 31% in 2027, driven primarily by ASP gains projected at 25% year-over-year for 2025.

ARM processors declined 4% quarter-over-quarter in PCs but increased 15% in servers. ARM’s PC unit share now stands at 13.2%, down 700 basis points quarter-over-quarter, while server unit share reached 13.0%, up 150 basis points. Bank of America expects ARM server adoption to continue growing, potentially reaching over 15% unit share by 2027, more than double the 6.8% from 2024.

In the notebook segment, Intel gained 230 basis points of value share quarter-over-quarter to reach 66.9%, despite AMD’s superior ASP performance. For desktops, AMD’s unit increase of 17% quarter-over-quarter (versus Intel’s 4% decline) and 19% ASP growth (versus Intel’s 4% decline) resulted in AMD gaining 470 basis points of value share to reach 37.3%.

Server sales showed AMD reaching $2.2 billion, up 6% quarter-over-quarter compared to Intel’s 1% decline and ARM’s estimated 15% growth. AMD’s server value share reached 37.1%, up 100 basis points quarter-over-quarter, its highest level in over a decade.

Bank of America maintains a Buy rating on AMD and ARM while keeping a Neutral stance on Intel, noting that expected CPU share losses for Intel could be offset by potential strategic improvements under CEO Tan and gross margin benefits as Intel brings more wafer production in-house in 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.