Intel shares fell 3.2% in premarket trading on Thursday, extending a recent slide as new UBS data revealed the company lost significant server CPU market share to AMD and Arm. Here’s what the numbers reveal and what they could mean for Intel’s AI future.
UBS reports that total server CPU shipments rose 19% year over year in the first quarter. Intel’s share did not grow as quickly. Its unit share fell by about 3.7 percentage points to 54.9%. AMD’s share increased by 2.3 points to 27.4%, and Arm’s share rose by 1.4 points to 17.7%. In premarket trading, AMD shares fell 2%, and Arm shares dropped 3.8%.
Intel is losing market share, but the overall market is expanding rapidly. UBS estimates that the total market for server CPUs will grow from around $30 billion in 2025 to $170 billion by 2030, driven by increasing demand for AI. As the market grows, Intel’s revenue could still rise even with a smaller share.
Looking ahead, Arm could have a major impact on the server CPU landscape. UBS predicts that Arm’s instruction set could power 40% to 45% of server CPUs by 2030, significantly shifting market dynamics and replacing much of the x86 architecture currently used by Intel and AMD. By that time, Intel and AMD are expected to share the remaining market about equally.
Intel’s stock has more than tripled this year as investors bet on strong demand for server CPUs driven by AI infrastructure. However, the latest data shows that winning this demand is not certain, since two major competitors are also fighting for the same market.
Featured Courses
Recent news
OpenAI Weighs 5% U.S. Government Stake Ahead of Blockbuster IPO
OpenAI has held discussions about offering the U.S. government a 5% ownership stake, potentially structured through a sovereign wealth fund, according to a Financial Times report citing people familiar with the matter. The ChatGPT maker did not immediately respond to a request for comment. The move would add Washington to an already formidable roster of […]
Tesla Deliveries Loom as Investors Bet on Second Straight Quarterly Gain
Tesla is poised to report second-quarter delivery figures Thursday morning, capping a period marked by geopolitical conflict, a spike in oil prices, and continued fallout from shifting U.S. electric-vehicle policy. The automaker’s shares have rallied sharply ahead of the report, a signal that investors anticipate a strong outcome. Even so, forecasts vary widely enough that […]
Nvidia Stock Trails Chip Peers in First Half as Competition Broadens
Nvidia shares rose 0.4% to $195.75 in premarket trading on Tuesday, ending a first half that trailed the broader semiconductor sector. The stock is up 4.5% for the year through Monday, much less than the PHLX Semiconductor Index’s 94% gain over the same period. Here’s a look at why Nvidia has underperformed and what investors […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.