Intel Faces Troubled Waters as AMD Gains Ground in Market Share Battle
1min read Intel has lately been navigating through choppy waters, grappling with mounting challenges on its home turf in the semiconductor market. According to a recent report by Bank of America, Intel's market share continues to erode, primarily due to the intensifying competition from rival AMD. This dynamic has been particularly evident in the third quarter, where Intel witnessed a slump in PC shipment volumes. Despite an approximate 7.5% quarterly growth in PC demand, as estimated by IDC, Intel's shipments declined around 3% quarter-over-quarter.
On closer analysis, Bank of America cited that this disparity partially stems from AMD's strategic advantage in having a wider repertoire of products catering to Western consumers and desktop options. In contrast, Intel finds more of its portfolio reliant on the more sluggish Chinese corporate and notebook sectors. Nevertheless, both chipmakers managed to elevate their average selling prices by about 5%, driven by the demand for AI-enhanced PC products.
In terms of the server market, AMD showed resilience with a 7% increase in shipments quarter-over-quarter and a 10% rise year-over-year in the third quarter. While AMD's average server selling price remained steady, its move to integrate more cores in new products is anticipated to spur price growth in the upcoming quarters. Bank of America forecasts this upward trajectory to continue into the fourth quarter and throughout 2025.
Despite the stiff competition, Bank of America remains optimistic about AMD's prospects, projecting that AMD's CPU market share could climb to approximately 27% by the fiscal year 2026. However, they also highlight a potential threat to AMD from emerging Arm-based CPU suppliers, who have increasingly gained market share, accounting for 7% in the third quarter of 2024.
As Intel and AMD vie for dominance, the stakes are set to rise with NVIDIA poised to enter the CPU sector. This arrival, coupled with the AI-driven evolution of consumer and market needs, implies an increasingly competitive landscape, challenging Intel further amidst its ongoing strategic shifts.
