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The CPU market is slowly bottoming out after the pandemic. The number of chips sold is getting closer to pre-pandemic levels and AMD is benefiting from this. In
The CPU market is slowly bottoming out after the pandemic. The number of chips sold is getting closer to pre-pandemic levels and AMD is benefiting from this.
In the fourth quarter of 2024, 66 million CPUs were sold, according to analysts at Jon Peddie Research (JPR). That is 22 percent more than in the same period last year. After the pandemic in the fourth quarter of 2022, processor sales collapsed with only 54 million chips sold. Since then, the market has grown again by around seven percent per quarter.
The decline in 2022 was a direct result of the corona crisis. Sales of IT equipment, including servers and endpoints, surged during the pandemic. Telecommuting became the norm, and that required new hardware. At the same time, the supply chain came to a standstill, so that demand briefly exceeded supply. Laptop and processor manufacturers have ramped up production to provide everyone with a new device for their home office.
After the pandemic, this major unplanned IT hardware refresh ended and the supply chain got back on track. Many who wanted a new laptop or server had already purchased one. The result: surpluses in the warehouses and declining sales.
It took almost two years for the market to come out of this low. It previously appeared that the PC market was back on track for growth after being in the red. The same trend can now also be observed in the processing country.
To no one’s surprise, Intel is still by far the biggest player, but AMD is benefiting the most from rising sales. Mercury Research notes that AMD had a 23.1 percent server chip market share in the fourth quarter of 2023, up from 17.6 percent. AMD is also doing well in the mobile sector with growth from 16.4 percent to 20.3 percent. Finally, in the smaller desktop segment, AMD was able to increase its share from 18.6 percent in the previous year to 19.8 percent.
For the sake of clarity, the numbers only refer to x86 processors. This means that Intel is always responsible for any chips that AMD doesn’t take care of. ARM is also enjoying increasing popularity. The architecture is now said to account for 10.2 percent of all chip sales, from servers to Chromebooks.
Source: IT Daily
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