AMD and ARM challenge Intel dominance in shifting server CPU market

The server CPU market is undergoing a significant restructuring driven by surging demand for AI-specific processors. According to data from Bank of America Global Research, Mercury Research, and IDC, the total addressable market (TAM) for server CPUs is projected to exceed $210 billion by 2030, with AI-specific CPUs expected to account for approximately $180 billion of that value.

Market leadership is shifting as Intel's dominance declines. Projections suggest Intel's market share could drop from its current 62% to 35.8% by 2030. AMD is positioned to capture a significant portion of this transition, with its EPYC product line driving revenue share. In the first quarter of 2026, AMD's EPYC server processors are estimated to reach a record 46.2% revenue share.

In addition to the competition between x86 providers, the ARM architecture is emerging as a major force. ARM-based merchant CPUs and custom chips from cloud service providers are expected to command between 30% and 45% of the market by 2030. This shift is fueled by the rise of AI-driven workflows that require specialized hardware architectures.