AMD Shifts Data Center Market Dynamics, Server CPU Market Share Expected to Rival Intel by 2026

AMD has dramatically reshaped the landscape of the server CPU market, evolving into a formidable competitor against the long-standing leader, Intel, within just a few years.

AMD’s Impressive Rise to a 50% Market Share in Server CPUs in Under a Decade

Over the years, AMD’s data center revenue has soared, offering a stark contrast to its closest rival, Intel, which has faced challenges in the AI and data center sectors. With the introduction of its EPYC server CPUs, AMD has significantly increased its foothold in the market. Recent analysis from Mercury Research indicates that AMD is not only catching up to Intel but is also on track to potentially surpass its competitor. Industry experts anticipate that AMD could achieve a remarkable 50% market share in the server CPU segment in the coming years, thanks to their competitively priced and high-performance offerings.

Report: AMD nears 40% server market share in 1Q25, poised to match Intel in 2026

In 2017, AMD held nearly zero market share in the server processor segment. After CEO Lisa Su implemented a comprehensive platform strategy overhaul, AMD set ambitious goals for annual market share…

— Jukan Choi (@Jukanlosreve) June 11, 2025

To put this growth into perspective, AMD’s server CPU market share was nearly non-existent back in 2017. At that time, the company lacked competitive products. However, under the leadership of CEO Lisa Su, AMD shifted its focus to the workstation and server markets, launching the EPYC “Naples”series that introduced the innovative Zen architecture. This strategic decision has paid off immensely, with AMD making notable strides in recent years. As of the first quarter of 2025, reports indicated that AMD had captured 39.4% of the server market, reflecting a substantial quarter-over-quarter increase of 6.5%.

AMD’s increasing presence in the server CPU segment can be attributed not only to its expanding EPYC product line but also to the decline in competition. Intel’s recent challenges, including leadership changes and the failure to meet performance expectations, have created an opening for AMD. Although Intel’s Xeon platform remains a reliable choice, the competitive landscape has intensified, forcing Team Blue to recalibrate its strategy to maintain its dominance in the server CPU arena.

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