Key points
- Intel is maintaining its market share in both client and server markets against AMD, despite recent controversies and challenges.
- The X86 processor market saw strong growth in the IoT/SoC segment, with both Intel and AMD experiencing significant increases in shipments.
- AMD’s server revenues hit a record high, with a 0.1-point increase in market share, bringing its total server market share to 37.2%, while Intel’s shipments slightly outgrew AMD’s in the quarter.
According to a recent report by Mercury Research, Intel is holding on to its market share in both client and server markets against AMD. Despite the seemingly endless stream of bad news surrounding the company, Intel’s chip sales were roughly flat in the second quarter of 2025, with very little share trading hands. This is a significant development, as it shows that Intel is still a major player in the market, and its strong product lineup is helping it to maintain its position.
The report also notes that the X86 processor market saw strong growth in the IoT/SoC segment, with both Intel and AMD experiencing significant increases in shipments. This is an important area of growth for both companies, as the Internet of Things (IoT) continues to expand and more devices become connected. Intel’s strong position in the IoT market is a key factor in its ability to maintain its market share.
In the server market, AMD’s revenues hit a record high, with a 0.1-point increase in market share, bringing its total server market share to 37.2%. However, this growth was largely due to the sale of higher-priced CPUs, rather than a significant increase in unit shipments. Intel, on the other hand, saw its server shipments remain flat, but was able to sustain volumes by moving shipments to non-data center products, such as Xeon D in networking/storage servers.
The report also notes that the conventional server and client CPU markets saw typical seasonal growth, with all segments growing at statistically insignificant amounts above their respective seasonal median growth rates. This suggests that the market is returning to normal after a period of significant growth and volatility.
In terms of market share, Intel’s share of the market minus IoT and SOCs in Q2 was 75.8%, vs. 24.2% for AMD. This is a slight increase for Intel, and a slight decrease for AMD, compared to the previous quarter. However, it’s worth noting that AMD has been gaining ground in the server market, and its record-high revenues are a significant achievement.
The report also mentions that Arm showed strength in the server market, thanks to Nvidia’s GB200 processors ramping up volumes. On the client side, Apple had slightly higher shipments in the second quarter, but this was offset by weakness in Chromebooks.
Overall, the report suggests that the X86 processor market is returning to normal after a period of significant growth and volatility. Intel is maintaining its market share, while AMD is gaining ground in the server market. The IoT/SoC segment is a key area of growth for both companies, and Arm is showing strength in the server market. As the market continues to evolve, it will be interesting to see how these trends play out, and how Microsoft and Azure will be affected by these developments. With Windows Server being a key player in the server market, any changes in the market share of Intel and AMD will likely have an impact on Microsoft’s business.
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