The CPU market took a long time to recover from the pandemic, which saw a surge in demand for personal computers. New shocks to the global economy have not instilled confidence for buyers’ future decisions, but analysts from Bernstein claim that the processor market is starting to approach a balanced state. For AMD, this process has been more successful than for Intel.
AMD continues to strengthen its position, particularly in the CPU market for computers and server systems, compared to Intel. According to Bernstein, in Q3, the number of processors delivered to the market increased by 7%, in line with seasonal trends. At the same time, shipments of finished computers decreased by 2% year-on-year, compared to a 1% increase in Q2. Processor delivery channels are showing signs of supply and demand normalizing.
In the PC segment, the number of processors delivered for mobile and desktop computers in Q3 exceeded the number of computers delivered by just 2%, whereas in Q2 this imbalance reached 9%. The current situation is much closer to a balance between supply and demand. In the laptop segment, processor shipments in Q3 exceeded laptop deliveries by 4%, showing a 10% sequential increase. For desktop PCs, processor shipments in Q3 were 4% below nominal value. In other words, the PC processor market is much closer to equilibrium.
Physically, AMD increased its share of the laptop processor market by several percentage points to 19.2%, while in the desktop segment, the increase was measured at six percentage points, equating to a 28.7% market share. In terms of revenue, AMD’s share of the overall personal computer processor market rose sequentially by eight percentage points to 27.3%. Intel’s latest quarterly report revealed that in Q3, the company was not inclined to stimulate demand for its processors, indicating that the supply-demand ratio is near balance.
In the server segment, AMD’s progress in gaining market share by volume slightly slowed, although the company’s market share by revenue has grown more strongly. The market for computational accelerators for AI systems remains a challenge for both AMD and Intel. According to Intel’s estimates, it will earn no more than $500 million from its Gaudi family accelerators this year, while AMD has raised its forecast for revenue from its Instinct family accelerators to $5 billion. This is several times less than the revenue Nvidia earns in this market, and the performance dynamics of the three companies in 2025 will be an intriguing storyline.
