AMD is expected to overtake Intel in server processor revenue during 2027, ending decades of Chipzilla’s dominance in one of the semiconductor industry’s most profitable markets.
Global server CPU shipments are expected to reach 52.6 million units in 2027, up 45.7 per cent from the 36.1 million forecast for 2026. Shipments totalled approximately 28.4 million units in 2025, suggesting the market is entering an unusually rapid expansion.
Intel is expected to retain the largest share of shipments at 39 per cent, while AMD’s share could climb to 30.4 per cent. However, AMD’s higher average selling prices and growing popularity among major data centre operators are expected to give it the revenue advantage.
DigiTimes Intelligence analyst Stella Weng believes the growing use of AI inference is changing server hardware requirements. While training workloads rely heavily on graphics processors, inference services increasingly require substantial CPU resources to manage requests, applications and supporting workloads.
The shift towards agentic AI is particularly important. DigiTimes reports that some server configurations are moving from four GPUs per CPU towards a one-to-one ratio, dramatically increasing processor requirements as operators expand their infrastructure.
Traditional server replacement demand is expected to strengthen as cloud computing expands. This should benefit both companies, although AMD appears better positioned to capture higher-value sales with its EPYC processor range.
Arm-based server processors are becoming another serious threat to Chipzilla’s comfortable existence. DigiTimes forecasts that Arm server CPU shipments will increase 79.1 per cent in 2027, significantly faster than the 35.3 per cent growth expected for x86 processors.
The growing popularity of Arm designs reflects efforts by large cloud operators to develop processors tailored to their own workloads. Their investments are creating additional competition for Intel and AMD, particularly as computing requirements become more specialised.
However, the industry faces significant manufacturing constraints. Demand for advanced semiconductor production capacity has exceeded supply, with AMD particularly exposed because it relies on TSMC to manufacture its leading processors.
AMD chief executive Lisa Su recently travelled to Taiwan to secure manufacturing commitments as demand continued to outstrip available wafer capacity. TSMC’s advanced production lines are already heavily committed to AI accelerators, limiting capacity for conventional server processors.
Shortages of T-Glass and ABF substrates are creating further problems. These materials are essential for advanced chip packaging, and increasingly large server processors compete with AI accelerators for the same limited supplies. Intel faces its own difficulties as yields on its 18A manufacturing process continue to improve.
The forecast suggests that Intel could retain its position as the world’s largest server processor supplier by volume while surrendering its revenue leadership to AMD. Whether that happens will depend heavily on how quickly manufacturers can expand production and ease component shortages.
