AMD grabs more CPU share while pricier PCs punish desktop demand

The processor market is experiencing a mixed outlook, with server and mobile shipments increasing while desktop CPU volumes are on the decline due to expensive PCs. AMD's Zen processors have gained market share from Intel in all categories. For Q2 2026, Mercury Research reports that overall processor shipments decreased compared to the same period last year, largely due to lower SoC and embedded volumes, attributed to AMD's shrinking gaming console business and a significant drop in desktop CPU sales.

Mercury attributes this decline to higher PC prices and limited GPU supplies, which are impacting end demand for desktop PCs and CPUs. Desktop CPU shipments fell by over 20% year-on-year, with AMD experiencing a smaller decline compared to Intel. Consequently, AMD captured nearly 35% of desktop chips, up from around 32% a year ago.

Mobile processor shipments for laptops and tablets surged, while server processor shipments rose by 20% year-on-year, with AMD gaining market share in this segment as well. Once including only Intel Xeon SP and AMD EPYC chips, AMD's share in server processors reached 46.4%. Mercury also notes notable growth in Arm-based CPU systems for PCs and servers, with Arm capturing 15.3% of the client market and 13.6% of the server market in Q2 2026, marking a record high.