Desktop processor shipments fell by more than 20 percent year over year in the second quarter of 2026, according to new data from Mercury Research, even as AMD captured market share from Intel across every major category. The research firm attributes the overall decline in total processor volumes to lower system-on-chip and embedded shipments driven by AMD's shrinking games console business, combined with the sharp drop in desktop CPU demand. Meanwhile, mobile and server processor shipments posted gains during the quarter.
AMD now holds nearly 35 percent of the desktop chip market, up from roughly 32 percent a year earlier, as its decline was smaller than Intel's during the quarter. In mobile processors for laptops and tablets, AMD's share climbed to nearly 29 percent, a substantial jump from the 20.6 percent it commanded in the same quarter last year. Server processor shipments rose 20 percent compared to the prior year and increased more modestly from the first quarter, with AMD accounting for 34.5 percent of server chips versus 27.3 percent twelve months ago. Mercury Research notes that if the tally included only Intel Xeon SP and AMD EPYC processors, AMD's portion would reach 46.4 percent. Arm-based systems captured 15.3 percent of the client market in the second quarter, up 0.9 percentage points to a record high, while Arm's server share hit a record 13.6 percent, rising 0.5 percentage points.
Mercury Research says the firm "believe[s] that higher PC prices and limited GPU supplies are having a significant impact on end demand for desktop PCs, and thus desktop CPUs." The research firm associates the desktop chip decline with weaker demand for high-end gaming PCs, though it acknowledges the second quarter typically isn't strong for consumer sales. Mobile processor shipments for laptops and tablets ran counter to Mercury's earlier expectations, growing strongly from the previous quarter despite only a modest increase year over year. The firm recorded significant growth in Apple's Mac products, including the new lower-cost Neo line, while Arm-based Chromebooks also posted strong gains.
The rising PC prices stem from increases in memory component costs caused by a shortage, which Mercury Research traces to chipmakers prioritizing production of more profitable high-bandwidth memory chips used in AI servers. A shortfall in consumer GPU availability appears to have the same root cause, as manufacturers focus resources on lucrative data center components rather than gaming hardware. Intel added millions of units of mobile CPU capacity during the second quarter, significantly narrowing the gap between supply and demand after two heavily supply-constrained quarters, which drove the sharp increase in mobile chip output.
The processor market's divergence between desktop declines and server gains reflects a broader shift as AI infrastructure investment draws resources away from consumer hardware. AMD's consistent share gains across all segments suggest Intel faces pressure not just from supply issues but from competitive positioning as well. For buyers and IT planners, the memory shortage driving up PC costs shows no signs of immediate relief while AI server demand remains elevated. Enterprises weighing desktop refresh cycles may face continued price pressure and component scarcity through the remainder of the year.