Advanced Micro Devices (AMD) holds a third of the total market shares for central processing units (CPU), while chipmaker Arm experiences a slowdown in growth for the final quarter of 2022.
AMD's shares rose from 28.5% last year to 31.3% for x86 processors after chipping away part of Intel's market share. According to Mercury Research, AMD's shares rose from 28.5% last year to 31.3% for x86 processors after chipping away part of Intel's market share. Technology giant Intel still remains the dominant chipmaker with its 68.7% market share.
Mercury Research President Dean McCarron points out that the results came despite the weakening sales of the computer chip industry, dubbed the worst since the 1980s.
Analysts explain that the market slump is caused by lesser consumer demand for chips with companies returning onsite. The tech industry is also affected by buyers avoiding non-essential products due to rising inflation.
As a result, AMD surpassed Wall Street's expectations last month. Meanwhile, Intel admitted that it "stumbled" against its long-time competitor, which is why the chip-making giant will be issuing pay cuts for its employees.
On the other hand, the British chip designer arm wasn't quite as lucky, with its sales dropping from 14.6% to 13.3% in the previous quarter. Regardless, their current market share is still higher than last year's 10.3%.
Analysts explain that Arm is simultaneously affected by the downturn in PC demand as part of its profits come from Apple, which is also experiencing a drop in sales for its Mac lineup.
The Softbank Group-owned maker recently tied up with Qualcomm to produce PC chips for Windows as part of its strategic expansion to the PC market in preparation for its upcoming initial public offering.