The landscape of the semiconductor industry is witnessing a transformative phase, particularly marked by the contrasting trajectories of two giants: AMD (Advanced Micro Devices) and IntelRecent data from Mercury Research, focusing on their competition in the x86 CPU market, paints a picture of resilience and growth for AMD, while Intel grapples with its longstanding dominance.

As we step into 2024, AMD has managed to claim a noteworthy increase in units and revenue share across both consumer and server sectorsWith a significant uptick of 4% in unit share within the consumer PC market, AMD's strategies appear to be resonating well with customersContrarily, in the server market, the growth has tapered off to a modest 2% increaseThis juxtaposition highlights not only AMD's competitive edge but also Intel's entrenched position that is increasingly under threat.

In the realm of consumer desktop processors, the narrative shifts with Intel still holding a commanding lead, capturing approximately 75.4% of the market share by the end of 2024's fourth quarterYet, AMD has showcased remarkable growth, effectively increasing both revenue and unit shares at Intel's expenseFor AMD, the revenue share for consumer CPUs climbed to 24.6%, reflecting a substantial year-on-year growth of 4.5% and a quarter-on-quarter increase of 0.7%. This surge signifies AMD's stronghold in the high-end segment, with average selling prices (ASP) on the rise, indicative of burgeoning demand and market confidence.

The desktop CPU segment has emerged as a noteworthy success story for AMD in 2024, revealing a year-on-year increase in both shipment volume and revenue share, despite mixed quarterly performancesIntel, facing difficulties due to instabilities with its Raptor Lake CPUs and inventory adjustments among partners, saw its market share slipping, further complicating its recovery efforts.

By the end of the fourth quarter of 2024, AMD’s shipment share reached a commendable 27.1%, reflecting a year-on-year growth of 7.4% while decrementing by 1.6% quarter-over-quarter

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Intriguingly, Intel managed a 1.6% growth following the release of its Arrow Lake-S processors for desktops, yet it seems that this development did little to reclaim lost revenue shares in the recent quarter.

A closer look at AMD’s performance reveals an impressive growth trajectory with revenue share increasing to 27.3%, representing a year-on-year leap of 12.1%. This growth can largely be attributed to the enthusiasm surrounding AMD's Ryzen 9000 series CPUs, which have captured the interest of tech enthusiasts and gamers alikeConversely, despite the introduction of Arrow Lake-S, Intel appears to struggle in regaining traction.

Turning our attention to mobile CPUs, Intel still maintains a significant edge, boasting shipment volumes that are triple those of AMDHowever, AMD’s steady and incremental growth cannot be overlookedThe data reveals that in the fourth quarter of 2024, AMD’s shipment volume share achieved 23.7%, a 3.4% increase year-over-year, coupled with a 1.4% quarterly riseNotably, the revenue share ascended to 21.6%, reflecting a year-on-year growth of 6.5% and a 2.4% increase from the prior quarter.

The dynamics in the laptop segment are further influenced by the increasing presence of AMD processors, propelled by their reputation for performance, power efficiency, and rising brand recognitionAlthough Intel’s competitive Arrow Lake and Lunar Lake processors are noteworthy contenders, AMD’s gradual encroachment into this domain indicates shifting consumer preferencesNotably, the mobile market remains pivotal for AMD’s expansion, especially given that laptop sales outpace those of desktops by a factor of three.