CPU Market Q4 2025: Server Growth Outpaces Client Recovery – AMD Gains Share

The global CPU market demonstrated a diverging performance in the fourth quarter of 2025, with robust growth in the server segment contrasting with a moderate recovery in the client market. This dynamic is being fueled by sustained investment in data centers, cloud infrastructure, and, crucially, artificial intelligence systems.

Overall client processor shipments increased by 2.7 percent quarter-over-quarter, continuing a four-quarter recovery trend. However, year-over-year shipments remain down 7 percent, indicating that the PC market has achieved a degree of stability without fully returning to previous growth cycles. Fluctuations in customs regulations and the impending end of support for Windows 10 contributed to some temporary market activity, influencing purchasing decisions.

Within the client segment, notebooks continue to represent the largest share, while desktop systems maintain a smaller, though stable, presence. Manufacturers are attempting to stimulate demand through new platforms and processor generations. However, the first quarter of 2026 is anticipated to face headwinds, potentially stemming from memory bottlenecks and rising production costs, which could dampen delivery figures.

The server segment, in contrast, is experiencing significant momentum. Deliveries in Q4 2025 rose by 6.5 percent compared to the previous quarter and by 13.6 percent year-over-year. This growth is directly linked to ongoing investment in data centers, cloud infrastructure, and the escalating demand for powerful server platforms capable of handling the computational demands of AI training, and operation.

AMD has been steadily gaining ground in the server market. Its share of server CPU shipments increased from 25.2 percent to 28.8 percent year-over-year. While Intel remains the dominant player with approximately 71 percent market share, it has experienced a decline in its share compared to the previous year. This shift reflects the intensifying competition within the data center market, where factors such as energy efficiency, core count, platform features, and total cost of ownership are becoming increasingly critical.

Both AMD and Intel are pursuing ambitious product roadmaps. AMD is preparing for the release of its Zen 6 generation in 2026, which is expected to deliver performance and efficiency improvements across both server and client segments. Intel is focusing on streamlining its product planning and accelerating time-to-market. In the data center, Intel is prioritizing new generations like Diamond Rapids, with Coral Rapids set to reintroduce multi-threading to its server roadmap. The company is also forging closer collaborations within the AI ecosystem, including the development of specialized Xeon variants designed for AI host nodes. In the client segment, new Core and Core Ultra series, manufactured on the 18A process, are intended to bolster competitiveness and increase market share, particularly in the notebook sector.

AMD’s success in the server market is particularly noteworthy, as evidenced by its achieving a 41.3% revenue share in Q4 2025, its highest to date. This represents a significant milestone, surpassing the 40% barrier for the first time and indicating that AMD is not only increasing volume but also capturing sales in higher-value segments. The company’s revenue share of 41.3% contrasts with a unit share of 28.8%, highlighting a shift towards selling more CPUs with higher average selling prices (ASPs).

Desktop CPU revenue also saw strong performance for AMD, climbing to 42.6% in Q4 2025, the highest level since the launch of the Ryzen processor. Desktop unit share rose to 36.4%, driven by demand in both OEM systems and the DIY market. The mobile CPU segment also experienced growth, with a 3.3 percentage point year-over-year increase in revenue share, reaching 24.9%, and a unit share of 26.0%.

The market is stabilizing after recent fluctuations, but is developing in a highly segmented manner. While the traditional PC sector is experiencing only moderate growth and continues to face structural challenges, the server business is being propelled forward at a significantly faster rate by the dynamics of AI and cloud computing.

The fourth quarter of 2025 confirms a clear division within the CPU market: a moderate recovery in the client segment and strong growth in the server segment. Driven by AI investments and data center demand, momentum is shifting decisively towards data centers. The key factor for 2026 will be the continued willingness to invest in AI and the ability of manufacturers to execute their product roadmaps to secure or expand their market share.