Advanced Micro Devices (NASDAQ:AMD) continues to solidify its position in the CPU market, with notable gains in both unit and revenue share, according to a new report from Bernstein.
The report highlights AMD's sustained momentum in the notebook CPU segment, where the company captured an additional point of unit share in Q2 2024, bringing its total to approximately 20.3%. This surge in market share was accompanied by a corresponding rise in revenue share, which climbed by nearly three points, reaching 17.7%.
Bernstein's analysis shows that AMD's gains are not limited to notebooks. The company also made inroads in the desktop CPU market, where it saw a slight increase in revenue share.
While Intel (NASDAQ:INTC) still maintains a dominant position in the desktop segment, AMD's ability to gradually chip away at its rival's market share underscores the competitive pressures facing Intel.
According to Bernstein, AMD’s market share gains have been partly driven by the company’s recent pricing adjustments.
AMD's notebook average selling prices (ASPs) increased by 13% quarter-over-quarter, narrowing the gap with Intel's premium pricing. Despite this price increase, AMD's ASPs remain about 26% below their COVID-19 peak levels.
In contrast, Intel's notebook ASPs fell by 2% during the same period, although they still command a premium over AMD's products.
In the server CPU market, AMD gained 0.5 percentage points of unit share and increased its revenue share by 1 point in Q2 2024. ASPs in this sector climbed 3% sequentially, compared to the 1% rise for intel.
“Intel’s launch of Sierra Forest and Granite Rapids, and AMD’s Turin launch, will be closely watched in that context as Intel hopes to reverse the share trend, and AMD strives to maintain it,” analysts at Bernstein wrote.
“And AMD investors continue to look toward AI of course though we do not believe outlook, even if recently raised, has been above expectations, but we shall see if they might benefit from their larger competitors’ recent delays,” they added.
Bernstein rates both AMD and Intel as Market Perform, with respective price targets of $150 and $25.