AMD has once again strengthened its position in the server market. According to new figures from market research firm Mercury Research, the company accounted for 33.2 percent of all x86 server processors shipped in the first quarter of 2026. This growth comes at a time when demand for AI infrastructure continues to drive data centers worldwide.
While the total x86 processor market saw a decline, the server segment actually performed well. The number of server CPUs shipped was more than 10 percent higher than a year earlier. According to The Register, this is mainly due to investments in AI servers, which require ever-increasing computing power.
AMD is benefiting from this with its Epyc processors. The company gained six percentage points of market share in a single year and now controls about one-third of the server market. Intel remains by far the largest supplier, with approximately two-thirds of the market.
AI Keeps Server Market Afloat
The growth in server processors stands in contrast to the broader x86 market. In total, over 6 percent fewer processors were shipped in the first quarter than in the previous quarter. A seasonal decline is common, but according to Mercury Research, the drop this year was steeper than usual.
Intel was still grappling with earlier production bottlenecks. Last year, the company decided to allocate more production capacity to server chips, which impacted the availability of other processor lines. Despite this, shipments of Intel server processors remained virtually stable both quarter-over-quarter and year-over-year.
The outlook for data center chips remains favorable for the rest of the year. At the same time, AMD previously warned that memory suppliers are struggling to meet demand. As a result, growth in CPU shipments could level off later this year.
AMD also gained market share outside the server market. Across all x86 processors, the company accounted for nearly one-third of total shipments. A less severe decline in sales of chips for game consoles contributed to this.
The desktop market, on the other hand, had a difficult quarter. Shipments fell nearly 20 percent compared to the same period last year. Notably, Intel performed better than AMD in this segment, allowing the company to regain market share. Intel accounted for 66.8 percent of the desktop market.
The picture was different for laptops. There, the decline was limited, and AMD even managed to achieve growth. As a result, its market share in mobile processors rose from 22.5 to 28.3 percent. According to Mercury Research, the limited availability of Intel laptop chips played a significant role in this.
Arm continues to grow
In addition to x86 processors, Arm is also gaining ground. According to Mercury Research, Arm-based chips accounted for 14.4 percent of the PC market in the first quarter. In servers, the share rose to 13.2 percent.
Nvidia is a major contributor to this growth. Demand for Grace processors is increasing as they are being used in Blackwell NVL72 systems for AI workloads. According to Mercury Research, shipments of Arm server chips have nearly doubled compared to a year ago.