Intel vs AMD: the "reds" have success in the battle for the processor market

Despite facing a challenging financial situation, Intel continues to hold a significant share of the global processor market. Its products for desktops, mobile devices, and data centers account for over 70% of the market share. However, AMD is gradually eroding this dominance, akin to warm water dripping onto a massive glacier.

The latest market analysis from Mercury Research highlights this trend, showing that AMD is making substantial gains in the server CPU segment while Intel remains the leading player in the client sector. The figures indicate that AMD is slowly eating away at Intel's market share, with server processors being the fastest-growing category for the company. For example, over the past year, AMD has captured 5.6% of the market share from Intel. There is a trend of AMD taking roughly 1% of the market from Intel each quarter.

While AMD is improving its position in the data center segment, Intel still dominates the industry with a market share of 75.9%. It appears that Intel reigns supreme in sales volume, whereas AMD profits significantly from its expensive AI accelerators. In the second quarter, both companies earned nearly the same amount from data center processor sales—around $3 billion. However, Intel commands a much larger market share to achieve that revenue. AMD reported that its MI300 accelerators generated $1 billion faster than any other product in its history, with sales of its data center chips increasing by 115% over the past year.

In the client segment, AMD’s progress has been somewhat slower. For all client processors, including chips for desktops and mobile devices, AMD increased its market share by 3.8% compared to the same period last year, reaching 21.1% against Intel's 78.9% share.

When examining categories individually, in the second quarter, AMD lost 1% of the desktop processor market share, leaving Intel with 77% of the market. However, AMD's sales in that segment still rose by 3.6% year-over-year. Regarding laptop processors, AMD currently holds 20.3% of the market, with its share increasing by 3.8% since last year. Consequently, Intel occupies 79.7% of the market.

Source: extremetech