--- title: "Server CPU market reshuffle? UBS: AMD and Arm erode Intel's market share in the first quarter" type: "News" locale: "en" url: "https://longbridge.com/en/news/286339135.md" description: "The UBS report shows that Arm Holdings and AMD's server CPU shipments in the first quarter of 2023 grew more than Intel on a quarter-on-quarter basis, continuing to erode its market share. Intel's market share fell to 54.9%, while AMD rose to 27.4% and ARM rose to 17.7%. Analysts expect that capital expenditures from hyperscale data centers will drive CPU demand growth, with no slowdown expected until 2026" datetime: "2026-05-14T01:28:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286339135.md) - [en](https://longbridge.com/en/news/286339135.md) - [zh-HK](https://longbridge.com/zh-HK/news/286339135.md) --- # Server CPU market reshuffle? UBS: AMD and Arm erode Intel's market share in the first quarter According to the Zhitong Finance APP, UBS stated that Arm Holdings (ARM.US) and AMD (AMD.US) saw their server CPU shipments increase by more than Intel (INTC.US) in the first quarter, continuing to grow by eroding Intel's market share. "The total server CPU shipments increased by approximately 6% quarter-on-quarter (or about 19% year-on-year), better than the normal seasonal decline of about 7%. The shipment growth of ARM and AMD exceeded that of Intel, continuously eating into Intel's market share. By manufacturer, Intel's market share declined by approximately 370 basis points (to 54.9%), while AMD's market share increased by 230 basis points (to 27.4%), and ARM's market share rose by 140 basis points (to 17.7%)," stated the analyst team led by Timothy Arcuri. The analysts noted that ARM's market share grew year-on-year from 11.5% to 17.7%, AMD's market share increased from 24.1% to 27.4%, while Intel's market share dropped from 64.4% to 54.9%. In the x86 market, based on revenue, Intel's share fell by 490 basis points (to 53.8%), while AMD's share reached 46.2%—this was due to Intel's server shipments declining by 1% quarter-on-quarter, while AMD's server shipments increased by 15%. The analysts indicated that after a year-on-year growth of 21% in server CPUs in 2025, they do not expect any slowdown by 2026, as capital expenditures (capex) for hyperscale data centers are expected to grow nearly 81% year-on-year, driven by a leap in CPU demand from generative AI. "While all CPU architectures will benefit from the growth in AI demand in the short term, given the energy-saving characteristics of ARM architecture, we expect hyperscale data centers to adopt ARM architecture as head nodes and for other applications. AMD, with its industry-leading core count and multithreading capabilities, can run multiple sub-agents on a single device, thus better handling agent workloads, putting it in a favorable position. We believe that with the launch of the Coral Rapids series products, Intel's server roadmap will become more competitive, and we also think that as agent workloads run locally, it will catalyze growth in the personal computer market in the medium term, benefiting Intel in the client segment as well," Arcuri and his team stated. Additionally, the analysts pointed out that total PC CPU shipments (including desktops and mobile devices) in the first quarter of 2026 decreased by 13% quarter-on-quarter, which is 6 percentage points lower than the five-year average (a quarter-on-quarter decline of 7%), marking the second consecutive quarter below seasonal growth, with a year-on-year decline of 6%. x86 desktop CPU shipments fell by 26% quarter-on-quarter (normal seasonality is a quarter-on-quarter decline of 19%), while x86 laptop CPU shipments decreased by 7% quarter-on-quarter (normal seasonality is a quarter-on-quarter decline of 5%) In terms of shipment volume, Intel's desktop market share increased by 160 basis points quarter-over-quarter (to 61.6%), but its laptop market share decreased by 160 basis points (to 59.8%). Despite the early launch of the Panther Lake processors, its overall market share still declined by 80 basis points to 60.2%. AMD's shipment market share increased by 10 basis points (to 25.3%), while Arm's market share grew by 50 basis points (to 14.4%). In terms of revenue, the quarter-over-quarter trend in market share changes is similar. Analysts noted that both Intel and AMD's average selling prices (ASP) for PCs achieved moderate single-digit percentage growth quarter-over-quarter, above the typically stable normal seasonal levels. UBS predicts that global personal computer shipments will decline by approximately 11% year-over-year in 2026 due to demand being impacted by rising memory prices. "Specifically, we believe that some early purchases occurred in the first quarter of 2026 before further price increases, and we expect below-seasonal growth in the second to fourth quarters of 2026. Therefore, we forecast global PC shipments to be around 242 million units," Arcuri and his team stated. "Looking ahead, given the persistently high memory prices, potential configuration downgrades, and a more normal replacement cycle following the transition to Windows 11, we expect PC shipments to grow by only 2% year-over-year in 2027. Nevertheless, AMD will continue to directly take market share from Intel in the client market." ### Related Stocks - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [ARM.US](https://longbridge.com/en/quote/ARM.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [ARMW.US](https://longbridge.com/en/quote/ARMW.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [INTW.US](https://longbridge.com/en/quote/INTW.US.md) - [UBS.US](https://longbridge.com/en/quote/UBS.US.md) ## Related News & Research - [Why Intel Stock Shot Up Again In May](https://longbridge.com/en/news/288610499.md) - [Will AMD stock hit a $1 trillion market cap in 2026?](https://longbridge.com/en/news/289103570.md) - [Why Intel stock is outperforming the broader market today](https://longbridge.com/en/news/288612701.md) - [Why Is Arm Stock Falling Friday?](https://longbridge.com/en/news/288881984.md) - [Intel comeback or AMD takeover? 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