AMD Set to Rival Intel in Server CPU Market by 2026

AMD has dramatically reshaped the server CPU market, challenging Intel’s dominance in the data center segment. With its EPYC processor line, AMD has surged into a competitive position, gaining significant traction among major cloud providers and data center operators.

The once-dominant Intel is now struggling to maintain its lead, especially in the AI and data center space, as AMD’s offerings continue to evolve and push the boundaries of performance and efficiency.

In 2017, AMD held a minuscule share of the server market, barely registering on the radar. Under the leadership of CEO Lisa Su, AMD refocused its strategy, aiming to develop competitive server processors. The launch of the EPYC “Naples” series brought the Zen architecture to the forefront, a game-changer that paved the way for AMD’s rise in the sector. Fast forward to the first quarter of 2025, and AMD’s server market share has climbed to an impressive 39.4%, marking a 6.5% quarter-over-quarter increase.

This surge isn’t just about AMD’s growing lineup of EPYC processors. The competition, namely Intel, has faced its own set of struggles, particularly with leadership changes and missed targets. Intel’s Xeon platform, though still highly capable, now faces a more aggressive AMD. As Team Blue grapples with issues, AMD is well-positioned to achieve a 50% market share in the server CPU market by 2026. According to Mercury Research, Team Red’s momentum is undeniable, and Intel will need to ramp up its efforts to fend off this rising competitor.

As the data center market increasingly adopts AMD’s EPYC CPUs, Intel may find itself forced to reconsider its strategy. While Intel’s Xeon chips remain a popular choice, the landscape is changing rapidly. AMD’s ability to offer competitive pricing, coupled with impressive performance gains, could be the key to leveling the playing field within the next few years.