In the third quarter of 2025, US semiconductor CPU trends showed continued market share gains for Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) and Arm Holdings PLC (NASDAQ:ARM), while Intel Corp (NASDAQ:INTC, XETRA:INL) benefited from higher average selling prices (ASPs) amid ongoing supply constraints, according to Bank of America analysts.
Based on Mercury Research data, AMD and ARM both outperformed Intel in unit growth across desktop, notebook, and server segments, the analysts wrote in a note to clients.
Intel’s PC and server units grew modestly at +2% and -1% quarter-over-quarter, respectively, while AMD reported +10%/+1% and ARM +7%/+16%.
The analysts attributed Intel’s slower unit growth to supply limitations at its 7nm and 10nm nodes.
Despite the unit lag, Intel’s average selling prices (ASPs) rose sharply in Q3, increasing 8% for PCs and 7% for servers quarter-over-quarter, helping offset some of the competitive pressure.
In comparison, AMD’s ASPs grew more modestly during the quarter, though still significantly higher year-to-date.
ARM server shipments also expanded, with content gains and favorable pricing trends likely contributing to a more than 100 basis-point increase in unit and value share quarter-over-quarter.
Looking ahead, Bank of America analysts project a relatively conservative PC CPU outlook, with industry unit growth expected at +4% for 2025 and flat in 2026, aligning with the bank’s own estimates of +3%/+1% year-over-year.
Server demand, however, remains a growth driver, supported by AI infrastructure expansion, they believe. AMD projects a $60 billion total addressable market (TAM) for server CPUs by 2030, while the bank maintains a more cautious forecast of $33 billion for 2027 and $36 billion for 2028.
The bank’s analysts also noted that Intel’s short-term pricing strength is likely tied to supply constraints, while AMD and ARM’s long-term growth is supported by enterprise PC refresh cycles and AI-driven server demand.
Major hyperscalers, including Amazon, Microsoft, and Google, continue to adopt ARM-based CPUs, such as the NVDA Grace, Graviton4, Cobalt 100, and Axion chips, further boosting unit content and ASP tailwinds.
In the third quarter, AMD and ARM continued to gain market share across key segments. AMD led in desktop sales, while ARM strengthened its position in servers, increasing its value share by about 1 percentage point. Intel’s growth was more modest, constrained by supply shortages, though its higher pricing helped maintain revenue.
Bank of America maintained a ‘Buy’ rating on AMD and ARM, citing continued server and PC share gains and content growth opportunities, while keeping an “Underperform/Perform” view on Intel, noting competitive pressures in x86 and foundry markets.