Key insights
- Evercore reiterated Outperform ratings on AMD, ARM, and Intel after a market share report showed AMD and ARM gaining server CPU market share at Intel's expense. The firm's "CPU renaissance" thesis projects significant growth for all three companies, with AMD and ARM expected to outpace Intel. This positive outlook on AMD and ARM could lead to increased investor interest in these stocks.
Investing.com - Evercore reiterated Outperform ratings on Advanced Micro Devices (NASDAQ:AMD), Arm Holdings (NASDAQ:ARM) and Intel (NASDAQ:INTC) following the first-quarter 2026 market share report, which showed continued shifts in the server CPU market.
AMD gained 220 basis points of quarter-over-quarter server CPU unit share while Arm gained 140 basis points, leading to Intel’s unit share falling from 59% to 55%. Feedback from Arm indicated that Mercury data undercalls Arm server CPU units by approximately 30%, suggesting the total server CPU unit total addressable market in 2025 was 30.4 million with Intel at 59%, AMD at 24% and Arm at 17%.
Evercore reiterated its CPU renaissance thesis, which implies the server CPU total addressable market expands to 75 million to 110 million annual unit shipment levels. The firm expects share to normalize toward one-third each for Intel, AMD and Arm.
The thesis implies a low double-digit percentage five-year unit compound annual growth rate for Intel, 34% for AMD and 43% for Arm. Evercore views the first-quarter 2026 market share report as positive for AMD and Arm while highlighting acute server CPU constraints for Intel.
The firm maintained Outperform ratings on all three semiconductor companies.
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