AMD records a 15% increase in the CPU market while Intel shrinks 3%

One of the largest banks in the USA, Bank of America, has recently shed some light on the processor market, sharing some intriguing data points. According to their analysis, which draws upon figures from Mercury Research, AMD has seen impressive growth of over 15% in the third quarter of 2024, while Intel has experienced a 3% decline.

The bank’s insights suggest that AMD has a stronger foothold among Western and desktop consumers, whereas Intel seems more focused on the Chinese market, enterprises, and notebooks. Interestingly, both companies have witnessed around a 5% increase in average selling prices (ASP), which the bank attributes to the growing demand for AI-focused products, which tend to command higher prices.

Looking ahead, the data reveals that server chip shipments have increased by 7% quarter-over-quarter and 10% year-over-year, following two consecutive quarters of declining shipments. The bank notes that CPU inventories have now normalized, and they expect this growth trend to continue into 2025.

Furthermore, Bank of America has adjusted its forecasts for the CPU market, now projecting that AMD will grow around 27% by 2026, up from the 19% estimate they had previously made. This upward revision is primarily due to the strong performance of AMD’s Ryzen processors, which have been steadily gaining ground in the processor landscape since the launch of the Ryzen lineup in 2017, following the challenges faced with their earlier FX CPUs.

The bank’s findings suggest that the processor market has become increasingly competitive, with Intel being prompted to adjust its core counts and architectural innovations, which had stagnated. Despite these efforts, Intel’s latest bets in this segment have not yet yielded the desired results.

• Intel regrets integrating memories into Lunar Lake CPUs
• Intel Arc Battlemage Graphics Cards will arrive in December
• Radeon RX 8000 mobile GPUs will only have two models with 8 to 16 GB