Intel’s CPU Market Share Falls to Lowest Level Since 1995 as AMD Gains Ground
Intel’s latest quarterly results showed signs of a meaningful recovery, especially in the data center business, where revenue climbed 59 percent year over year. But despite that improvement, new market share data suggests the company is still facing intense pressure from AMD across key CPU segments.
According to the latest figures from Mercury Research, Intel’s share of the x86 CPU market has dropped below 70 percent for the first time in 31 years. The company now holds 69.3 percent of the market, down 6.5 percentage points from the same period last year and about 1 percentage point from the previous quarter. That marks Intel’s lowest x86 CPU share since 1995.
AMD, meanwhile, continues to gain momentum. The company has been steadily increasing its presence in desktops, laptops, and servers, helped by strong demand for its Ryzen and EPYC processors. Intel still leads the overall CPU market, but the gap between the two chipmakers is narrowing.
When semicustom chips, embedded processors, and IoT products are included, Intel’s position weakens further. In that broader CPU category, Intel’s market share fell to 65.9 percent in the second quarter, down 4.6 percentage points year over year and 1.5 percentage points quarter over quarter. AMD’s share rose to 34.1 percent.
The server CPU market is one of the most important battlegrounds for Intel and AMD, and the latest data shows AMD making especially strong progress. On the surface, Intel holds 65.5 percent of the server CPU market, while AMD has 34.5 percent.
However, the comparison becomes more interesting when the figures are adjusted for differences in how the two companies report certain products. AMD does not include embedded CPUs shipped for networking and storage applications in its data center segment, while Intel does. After accounting for that difference, AMD’s real server CPU share is estimated at 46.4 percent, compared with Intel’s 53.6 percent.
That would represent a 9.2 percentage point year-over-year gain for AMD in the server market, highlighting how quickly the company is advancing in data center processors. Independent market data from Jon Peddie Research also points to a similar trend, showing AMD on a clear upward trajectory against Intel.
AMD also reached a new high in the PC processor market. Its share grew 6.4 percentage points year over year to a record 30.3 percent, while Intel held 69.7 percent. This is notable because overall desktop PC shipments declined by 20 percent year over year in the second quarter, meaning AMD gained share even in a shrinking market.
In desktop CPUs, Intel now holds 65.1 percent of the market, while AMD has climbed to 34.9 percent. In laptops, Intel remains stronger with a 71.1 percent share, compared with AMD’s 28.9 percent.
Intel’s challenge is not a lack of revenue growth in certain areas. The company’s second-quarter performance shows that parts of its business are recovering. The bigger issue is that AMD continues to take share in markets where Intel once had overwhelming dominance.
Intel is also preparing for major manufacturing and investment decisions. During its recent earnings discussion, the company indicated that risk production for its 14A process node is now expected to begin in 2027. Intel also signaled confidence in raising capital spending significantly next year, suggesting it has better visibility into future customer orders.
For now, Intel remains the largest player in the x86 CPU market, but AMD’s steady gains are reshaping the competitive landscape. The latest numbers show a market that is no longer defined by Intel’s dominance alone. Instead, AMD is becoming an increasingly powerful force in PCs, servers, and data centers, setting the stage for an even tougher CPU battle in the years ahead.
