AMD Gains More Share in Server CPU Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: NASDAQ.COM
- Market Share Shift: According to Mercury Research, Intel's share of the server CPU market fell to 66.8% in Q1 2026 from 72.8% a year earlier, indicating AMD's Epyc processors are in high demand among hyperscalers and enterprises, potentially intensifying pressure on Intel's market position.
- Significant Revenue Growth: AMD's data center revenue surged by 57% year-over-year to $5.8 billion in Q1 2026, demonstrating strong performance in the server CPU market and customer recognition, particularly among cloud and enterprise clients.
- Enhanced Competitive Advantage: AMD's next-generation server CPUs are expected to further strengthen its competitive edge by delivering higher performance at lower costs, attracting more customers across sectors like financial services, healthcare, and digital infrastructure, which could accelerate market share growth.
- Challenges for Intel: Despite Intel's DCAI segment revenue increasing by 22% year-over-year to $5.1 billion, its ongoing market share decline and high valuation put it under significant pressure, necessitating effective measures to maintain its market position.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 467.510
Low
210.00
Averages
289.13
High
377.00
Current: 467.510
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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