AMD gained share in key processor classes in Q1 | Mercury Analysis

Superior Micro Units gained market share within the x86 processor market in shopper and server classes, based on market researcher Mercury Analysis.

Competitors is at all times fierce within the x86 processor market — which lately means the rivalry between AMD and Intel. Intel gained some share within the Web of Issues (IoT) market.

Excluding the IoT and semi-custom merchandise (which embrace sport console chips, which AMD makes), the market continued to favor AMD, as soon as once more having on-quarter and on-year features in each shopper and server segments.

Within the first quarter ended March 31, analyst Dean McCarron of Mercury Analysis mentioned x86 processor shipments had been in step with typical seasonal developments for each shopper and server processors, with all segments down reasonably on quarter as is regular for a primary quarter.

This previous quarter was the primary time since early 2020 when the COVID pandemic started that market outcomes have been fully regular within the desktop, cellular and server segments.

IoT/SoC processor shipments declined excess of typical as decreased console demand impacted AMD’s SoC shipments. AMD talked about in its analyst name that gaming income particularly dropped 48% in Q1 in comparison with a yr earlier. Because the ageing consoles promote in smaller numbers, AMD expects annual comparability to be down in Q2 in addition to within the second half of 2024.

As a result of the year-ago quarter remained impacted by stock correction efforts, the statistics and share actions reported right here prior to now few quarters are extra reflective of the suppliers differing within the depth and timing of their stock corrections, quite than indicating sales-out share of the PC market, McCarron mentioned.

The corrections had been largely resolved by the third quarter of 2023, so current-quarter share outcomes are most likely in step with precise CPU sell-in, and by the third quarter of 2024 most comparisons must be legitimate — however the on-year outcomes actually aren’t.

For all-inclusive share, which counts not solely PC shopper CPUs and servers but in addition IoT and semi-custom merchandise utilized in gadgets like gaming consoles, Intel gained 2.4 proportion factors on quarter. The driving force of the features right here was AMD’s shrinking SoC enterprise — whereas AMD gained whole shopper and server share, the motion was far lower than what was wanted to beat dramatically decrease SoC shipments. Intel gained share on yr as nicely, once more attributable to AMD’s decrease SoC shipments.

Total share excluding IoT and semi-custom merchandise continued to favor AMD, as soon as once more having on-quarter and on-year features in each shopper and server segments. Each Intel and AMD noticed decrease shipments
on-quarter, nevertheless AMD’s declines in each whole shopper and server CPUs had been comparatively smaller than Intel’s, so AMD gained general share.

Intel did acquire share in cellular shopper within the first quarter, because it continued to ramp Raptor Lake cores (whereas Meteor Lake ramped as nicely, it was off a tiny base within the prior quarter and the ramp was slower than anticipated. Intel famous of their earnings name that packaging capability was a limiting consider Meteor Lake’s
shipments), McCarron mentioned.

Along with the Raptor Lake ramp persevering with, Intel shipped an rising quantity of entry-level processors, each the “Intel Processor” N100 and N200 CPUs in addition to legacy Celeron processors — shipments on entry-level processors had been really up on quarter, partially offsetting seasonal declines in mainstream CPUs. AMD’s cellular shipments declined greater than Intel ensuing within the share loss, with the declines occurring in AMD’s oldest cellular CPU cores.

Market share adjustments in desktop had been the alternative of cellular, with AMD having practically flat desktop CPU shipments on quarter — which is much better than typical seasonal developments, and Intel seeing barely decrease than typical seasonal declines.

AMD’s robust desktop exhibiting in a usually steeply down quarter resulted in a comparatively massive on-quarter and on-year share improve for the primary quarter. For AMD the power in desktop was attributable to surprisingly robust Vermeer core shipments and the ramp of the brand new desktop model of the Phoenix Level APU. McCarron mentioned that whereas Intel’s Raptor Lake 14xxx sequence CPUs ramped strongly within the quarter, they had been changing the prior era 13xxx sequence (additionally Raptor Lake based mostly) so there was no internet upside to the ramp.

Each suppliers noticed their stronger shopper phase largely offset by the weaker phase, so internet shopper share solely moved barely.

As famous above, the server CPU market skilled typical seasonal declines within the quarter — recall final quarter was the one optimistic on-quarter development server processors has seen in 2023, nevertheless any improve within the base demand final quarter was greater than overwhelmed by seasonal dynamics pulling shipments decrease within the first quarter. Each suppliers noticed declines very near the seasonal norm, however AMD’s had been barely smaller declines than Intel’s and AMD’s share was up on quarter (recall Intel gained share on quarter in server for the primary time in practically 5 years in This autumn, 2023, so this was a one-off occasion for now).

AMD’s share is up considerably on yr, and AMD’s server CPU unit shipments had been additionally up on yr. Intel’s declines. The suppliers didn’t present a lot perception into server CPU dynamics of their earnings
discussions, however for AMD it was obvious that Genoa is the primary driver of on-year development.

AMD additionally shipped its MI300A product within the first quarter and this isn’t counted as a CPU; the MI300A is a hybrid CPU/GPU accelerator product. Had these models been counted as CPUs, AMD’s on-quarter share would have been increased.

Estimates confirmed that Arm PC CPU shipments had been practically flat on quarter, with declining shipments of processors into Apple’s Macs practically offset by a modest improve in Chromebook CPU shipments.

Mercury Analysis’s estimate for ARM PC shopper share (together with Chromebooks and Apple’s M-series based mostly Macs with X86 desktop and cellular CPUs within the whole shopper measurement estimate) within the first quarter is 11.1%, up from an revised fourth quarter estimate of 10.3%.

Mercury Researched famous that it’s extremely possible By way of’s Zhaoxin’s three way partnership share is rising, however now we have extraordinarily restricted visibility into this small phase of the CPU enterprise.