Advanced Micro Devices (NASDAQ:AMD) and ARM-based processors are steadily gaining market share from Intel (NASDAQ:INTC) across multiple segments, according to a Bank of America analysis covering Q2 2025.
In the PC market, total CPU shipments rose 1% sequentially and 6% year-over-year following a seasonally slow start to the year. Intel’s shipments grew 2% quarter-over-quarter, while AMD advanced 1%. ARM-based processor volumes, however, fell 4%.
Intel managed modest gains in notebook unit share, rising 230 basis points sequentially, but continued to lose ground in desktop CPUs, down 390 basis points, as it struggles to compete with AMD’s updated Ryzen 9000 series.
Average selling prices (ASPs) reveal a stark contrast: Intel’s ASPs inched up 1% sequentially, while AMD posted a robust 9% increase. This pricing gap contributed to Intel’s PC value share dropping another 60 basis points to 64.1%, marking a year-over-year decline of 1,050 basis points.
Server market trends show ARM growth
In servers, overall unit shipments rose 2% quarter-over-quarter. Intel remained flat, AMD grew 1%, and ARM processors posted strong growth at 15%. ASPs varied among x86 vendors: Intel declined 1% sequentially, while AMD’s ASPs jumped 5% as it began rolling out higher-core Zen 5 Turin processors.
AMD’s CPU revenue share in Q2 reached 29.5%, up 120 basis points from the prior quarter, extending its 300-basis-point gain in 2024. Bank of America projects AMD will reach 30% share in 2026 and 31% in 2027, largely driven by an expected 25% ASP increase year-over-year in 2025.
ARM processors, while down 4% in PC units, grew 15% in servers. ARM’s share of PC units fell to 13.2% (down 700 basis points sequentially), while server share climbed to 13.0% (up 150 basis points). Analysts at Bank of America expect ARM adoption in servers to continue accelerating, potentially surpassing 15% unit share by 2027—more than double its 6.8% share in 2024.
Segment highlights: notebooks, desktops, and servers
In notebooks, Intel’s value share rose 230 basis points sequentially to 66.9%, despite AMD’s higher ASPs. For desktops, AMD’s unit growth of 17% quarter-over-quarter (compared with Intel’s 4% decline) combined with 19% ASP growth (Intel down 4%) helped AMD gain 470 basis points of value share, reaching 37.3%.
Server revenue saw AMD reach $2.2 billion, up 6% sequentially, while Intel declined 1% and ARM achieved an estimated 15% growth. AMD’s server value share climbed to 37.1%, a 100-basis-point increase quarter-over-quarter, marking its highest level in more than ten years.
Bank of America continues to recommend buying AMD and ARM, while maintaining a neutral view on Intel. Analysts note that Intel’s expected CPU share losses could be partially offset by strategic initiatives under CEO Pat Gelsinger and potential margin benefits as the company brings more wafer production in-house in 2026.
Advanced Micro Devices stock price
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