CPU Market Sees 33% Growth in Q1 2024: Intel & AMD Experience Decline in Client & Server Segments, Market Stabilizes

CPU shipments to the client PC appeared to be on an impressive pace in the first quarter of 2024, particularly for AMD and Intel. JPR reports that the client CPU market has shipped a total of 62 million units, translating to a 33% YoY volatility. The processor’s shipment registered a slight three-month decrease from about 9.4% after mitigating the impact in Q4 2023. The notebook CPU posted a market capacity of 73%, and the remaining 27% belonged to desktop CPUs.

Intel & AMD Experience Decline and CPU Market Sees Growth

The mass sharing of clients also stimulated a 30% growth in shipments of integrated graphics processing unit units, totaling 56 million units. According to JPR, iGPUs will take over 98% of the PC client market, with only an insignificant area left for add-in boards. In conclusion, next year, AMD will tackle the world’s market with the next-generation Zen-5 architectures and reveal a plethora of Ryzen products for mobile and desktop clients.

Intel, of course, will open up with the Arrow Lake and Lunar Lake CPU for the desktop market and laptop clients. The only alarming trend is the client losing Intel and AMD shares in Q1 2024. Additionally, the server-side CPU shipments for the quarter fell by -13% sequentially and -17% annually. The reason for the slump was that customers put off purchases as they were preparing to switch to the next-generation products from both Intel and AMD due in the next few months.

However, judging by the shipment and revenue accrued by server-side CPUs, it is possible to assume that the decline was predominantly for Intel, as AMD generally saw an increase during this quarter. However, such a downturn is a part of the market cycle, and, considering that the PC market heats up in H2, the results of the second half of 2024 should pleasantly surprise.

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