AMD has close to 40% of the server market, should match (and possibly surpass) Intel by 2026

AMD is edging close to 40% of server market share in Q1 2025, where the company is expected to match (or even surpass) its major competitor -- Intel -- in 2026.

In a new report from DigiTimes picked up on X by insider @Jukanlosreve, we're hearing that in Q1 2025, AMD's server market share surged to 39.4% with expectations of surpassing 40% by the end of 2025. According to supply chain sources of DigiTimes, AMD is reportedly confident it will capture 50% of the server CPU market by 2026, where it will be (more) massively competitive against Intel.

If we rewind to 2017, AMD had virtually 0% market share in the server CPU business, but after CEO Lisa Su took control, those efforts saw the company reach 25% in 2023, and then 33% in 2024. Things are looking more than excellent for AMD and the server CPU market, something that wouldn't have predicted 10 years ago.

As for the desktop CPU market, AMD's product revenue market share rose sharply by 15.2% year-over-year, and 6.4% quarter-over-quarter. Notebook product revenue market share increased by 7.3% year-over-year, and 0.5% quarter-over-quarter.

On the financial side of things, AMD has been exceeding expectations, where AMD reported revenue of US$7.44 billion in the first quarter of 2025, up 36% year-over-year, with net income soaring to US$709 million from US$123 million in the same quarter of 2024. Gross margin stood at 50%. The data center business unit generated US$3.7 billion in revenue, growing 57% year-over-year, fueled by increased sales of Epyc CPUs and Instinct GPUs.