Desktop CPU shipments from both AMD and Intel experienced a significant downturn in the second quarter of 2026, according to data from market research firm Mercury Research. This decline occurred despite a robust 10 percent sequential quarterly growth in the overall CPU market, which was bolstered by strong performance in server and mobile (laptop) processors across both x86 and ARM architectures. The data indicates a year-on-year decrease in desktop CPU shipments exceeding 20 percent, following a similarly poor first quarter.
While both companies saw substantial year-on-year weakness in their desktop offerings, AMD experienced relatively smaller declines compared to Intel. On a sequential basis, AMD's shipment declines were also less pronounced than Intel's, resulting in AMD gaining market share within the shrinking desktop CPU segment. However, this gain in share is occurring within a market that is contracting.
The figures likely reflect not only a reduction in standalone CPU purchases but also a broader slowdown in full system upgrades. The cost of acquiring all necessary components for a new PC build, particularly RAM, has become a significant deterrent for many consumers, even if CPU prices remain stable. This reluctance is exacerbated by ongoing global memory shortages, which drive up the prices of essential components.
While client laptop CPUs are performing well, this positive trend does not extend to all portable electronics. Global smartphone shipments, for instance, are projected to fall by 14.3% this year due to economic pressures. The ongoing component shortages, partly influenced by the demand from the AI server boom, are expected to continue impacting various product categories and industries for the foreseeable future.