AMD grabs more CPU share while pricier PCs punish desktop demand

The processor industry is experiencing a paradox, with overall shipments decreasing while AMD's market share continues to expand across all categories. According to Mercury Research, total processor shipments declined in Q2 2026 compared to the same period last year, largely due to a drop in demand for high-end gaming desktop PCs and reduced SoC and embedded volumes.

Mercury attributes the decline to higher system prices and limited GPU supplies, as the cost of memory components has surged due to chips prioritizing high-bandwidth memory for AI servers. AMD's House of Zen has overtaken Intel across the board, capturing nearly 35 percent of desktop CPU shipments, up from about 32 percent a year ago.

Desktop CPU volumes dropped by more than 20 percent year on year, but AMD's decline was less severe than Intel's. Meanwhile, mobile processor shipments for laptops and tablets surged, driven by increased Intel output after two supply-constrained quarters. AMD's share of this segment grew to nearly 29 percent, up from 20.6 percent a year ago.

Server processor shipments increased by 20 percent year on year, with AMD gaining ground to 34.5 percent of server processors, up from 27.3 percent a year ago. Arm-based CPU market saw significant growth, with Apple's Mac products and Arm-based Chromebooks also performing strongly. Arm-based systems captured 15.3 percent of the client market, a new record high, and a 13.6 percent share in servers, up 0.5 percentage points.