Intel is hitting rock bottom: Lowest microprocessor market share in more than 20 years

According to Citi analysts, Intel saw its share of the microprocessor market drop significantly in the fourth quarter of 2024, to its lowest level since 2002. Data from Mercury Research shows that Intel's share fell 104 basis points from the previous quarter, to 67.4%.

This decline has opened up space for competitors - AMD $AMD and ARM $ARM architecture - which have managed to gain more market share at Intel $INTC's expense .

AMD is growing in the notebook and server segment

AMD boosted its overall market share by 53 basis points to 22.1%. The biggest growth was in the notebook and server processor segment. AMD's share of the notebook microprocessor market increased by 102 basis points from 19.8% in the third quarter to 20.8% in the fourth quarter of 2024.

In contrast, AMD's share of the desktop processor segment weakened, falling 144 basis points to 25.3%.

ARM strengthens especially in the notebook segment

ARM architecture also gained market share, specifically by 51 basis points to 10.5%. The largest growth was in notebook processors, where the share increased by 96 basis points to 12,3 %. Nevertheless, ARM suffered slight losses in the desktop and server segments.

Intel is only growing in desktop processors

Despite the overall decline in share, Intel improved in the desktop segment, where its share increased by 166 basis points to 68.1%. However, this growth was not enough to offset the losses in the notebook and server processor categories, where Intel weakened to 66,9 % and 69,8 % respectively.

Overall market growth and analysts' outlook

Total microprocessor shipments grew 10.8% in the fourth quarter from the prior-year period, which Citi said indicates processor inventory building at distributors. Despite the market changes, Citi maintained a neutral recommendation on both Intel and AMD stock.

Market developments suggest that AMD and ARM continue to gain momentum, while Intel is struggling to maintain its dominant position in the desktop segment. Thus, the future of the market will depend on further technological developments and the ability of each manufacturer to adapt to changing demand.

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Source: Yahoo