Chip architecture battles are heating up as David gains ground on Goliath. ARM Holdings expanded its footprint in the microprocessor market last quarter, grabbing 13.6% of unit shipments in Q1 2025 — up from 10.8% the previous quarter. This gain comes at the expense of major players Intel and Advanced Micro Devices, who both saw their market positions erode during the same period.
- Intel’s market share tumbled to 65.3% — its lowest level since Citi began tracking the sector in 2002 — marking a potentially watershed moment in the semiconductor arena.
- AMD’s position also weakened, slipping from 22.1% to 21.1% quarter-over-quarter, though its newly announced $6B stock buyback program helped buoy shares.
Chipping away: Despite the shifting landscape, chip stocks have rallied over the past month, with ARM shares up 35%, while AMD and Intel have gained 33% and 13%, respectively. That performance is fueled by easing US-China trade tensions, after the countries agreed to reduce most tariffs while continuing negotiations. Confidence in the sector is also getting a boost from new collabs with Saudi Arabia’s AI company, Humain. The microprocessor market’s overall 6.1% decline in Q1 was less severe than the typical seasonal drop of 9.4% — thanks to stronger-than-expected server CPU shipments. That strong enterprise demand may continue to tilt the competitive balance in ARM’s favor.
