U.S. chip demand is increasingly shifting toward Advanced Micro Devices, Inc (NASDAQ:AMD) and Arm Holdings plc (NASDAQ:ARM), with new market data showing both outpacing Intel Corp (NASDAQ:INTC) in key personal computer (PC) and server shipments despite Intel's higher pricing gains.
Bank of America Securities analyst Vivek Arya says U.S. semiconductor trends continue to favor AMD and Arm over Intel, especially in units shipped across PCs and servers. The analyst highlighted new third-quarter 2025 central processing Unit (CPU) data from Mercury Research that shows AMD and Arm growing faster than Intel in nearly every category.
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The analyst noted that Intel's ongoing supply constraints at its Intel 7 and Intel 10 manufacturing nodes are limiting its output and slowing unit growth. In the third quarter, Intel's PC and server unit shipments grew only 2% and fell 1% quarter-over-quarter. By contrast, AMD shipped 10% more PC processors and 1% more server CPUs, while Arm-based server shipments surged 16% during the quarter.
Intel did post stronger average selling price (ASP) gains: PC/server ASPs increased 8% and 7% quarter-over-quarter, partially catching up with AMD's consistently strong mix and pricing trends over the past year.
AMD continues to benefit from enterprise PC upgrades tied to Windows 11 adoption and robust demand for artificial intelligence-capable server chips. Arm also sees pricing momentum as hyperscalers increase CPU core counts and ramp high-value solutions such as Nvidia Corp's (NASDAQ:NVDA) Grace and custom chips from Amazon.com Inc (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT), and Alphabet Inc‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.
Arya noted AMD extended its lead in desktops and benefited from Intel's shortages in notebooks. Meanwhile, Arm-based servers gained more than 100 basis points in both unit and revenue share on expanding content opportunity.
Looking ahead to the fourth quarter and 2026, the analyst flagged a modest PC outlook—something that could help Intel stabilize unit growth—but he argues that AMD and Arm will gain far more from server demand tied to AI growth. Arya maintained Buy ratings on AMD and Arm due to their structural share-gain opportunities across both PCs and servers. The analyst reiterated an Underperform rating on Intel, citing competitive challenges across both x86 chips and its foundry business.
IDC and Gartner expect PC shipments to grow low- to mid-single digits in 2025 and remain flat in 2026. Arya called those forecasts conservative as the post-pandemic refresh cycle continues. The analyst modelled industry CPU unit growth of 3% in 2025 and 1% in 2026, with most upside driven by richer ASPs.
On servers, AMD estimates a more than $60 billion CPU total addressable market (TAM) by 2030 fueled by AI. Arya remains cautious, modeling a $33 billion–$36 billion market by 2027–28 until CPU value contribution becomes clearer in the broader $1 trillion–plus AI infrastructure opportunity.
Overall, Arya noted pricing momentum temporarily favors Intel, but AMD and Arm remain the stronger long-term share-gain stories.
AMD Price Action: Advanced Micro Devices shares were down 4.11% at $230.62 at the time of publication on Tuesday, according to Benzinga Pro data.
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