New research from Bank of America reveals a drastic 15% increase in AMD’s market share in the third quarter of 2024, while Intel continues to lose ground in the processor market. Mercury Research data used in the analysis show a 3 percent drop in Intel PC shipments compared to the previous quarter, while the overall market rose 7.5 percent, according to IDC estimates.
AMD’s dominance is partly attributed to its stronger product mix in the Western consumer and desktop markets, while Intel maintains a larger presence in the China market and business notebooks. In the server segment, AMD’s shipments rose 7% quarter-over-quarter and 10% year-over-year, following two consecutive weak quarters due to normalization of processor inventories.
Bank of America analysts forecast AMD’s overall share of the processor market to reach 27% by 2026, up from 19% in 2023, beating previous estimates that put it below 25%. Both companies managed to increase average selling prices by 5% quarter-on-quarter, benefiting from higher-priced AI computing products. Market players point to the growing threat of processors based on the Arm architecture, whose share of the server market reached 7% in the third quarter of 2024, up from less than 5% in 2023 and around 1% in 2022.
Bank of America remains bullish on AMD and Arm, predicting further market share gains and growth on accelerator ramps, while remaining cautious on Intel. Rosenblatt Securities agrees with the assessment, predicting that AMD will gain double-digit share of the compute GPU market in 2025, even without offering significantly superior products to Nvidia.
Financial analysts say the shift in power in the processor market reflects broader changes in the semiconductor industry, with new players challenging the dominance of traditional manufacturers. AMD plans to launch new processors with increased core counts, expecting further price increases in the fourth quarter of 2024 and early 2025 at CES 2025.
0 Comments