Cambridge-based semiconductor giant ARM has continued its steady ascent in the global processor market, chipping away at the dominance of long-established rivals Intel and AMD. According to new figures from Mercury Research, shared by analysts at Citi, ARM’s share of processor unit shipments surged to 13.6% in the first quarter of 2025—up from 10.8% at the end of 2024.
That 2.8-point leap comes at the expense of both Intel and AMD. Intel’s market share dropped to 65.3%—its lowest level since Citi began tracking the sector in 2002. AMD also saw its share slip slightly, from 22.1% to 21.1%.
Despite the shifting market dynamics, Citi analysts maintained “Neutral” ratings for Intel and AMD. ARM, however, continues to receive a “Buy” recommendation from Citi, even after the firm trimmed its price target for the stock from $200 to $170 last week.
Strong Showing Amid Global Trade and AI Boom
The chip sector has had a turbulent start to the year, but May brought a much-needed rebound. Stocks across the industry rose sharply following the announcement that the US and China would slash most tariffs as part of ongoing trade negotiations.
AMD has seen the biggest benefit so far, with its stock up 19% in May. ARM and Intel aren’t far behind, posting gains of 13% and 12%, respectively.
The rally continued this week as AMD announced a fresh $6 billion share buyback, boosting confidence in the chipmaker’s future. Meanwhile, enthusiasm around artificial intelligence has also played a role. ARM, AMD, and Nvidia all revealed AI computing partnerships with Saudi Arabia’s government-backed AI firm, Humain.
