Semiconductor companies Arm Holdings (ARM) and AMD (AMD) gained CPU market share in the first quarter of 2025, according to new industry data shared by Evercore ISI. More specifically, five-star analyst Mark Lipacis said that Arm is gaining ground in the server and notebook markets, while AMD is seeing growth in the server market and maintaining strong average selling prices. As a result, Lipacis kept an Outperform rating on both stocks.
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The data, which is from Mercury Research, showed that Arm’s server market share rose by 4% year-over-year to 10%, and AMD’s share increased by 2.3% to reach 24%. Meanwhile, Intel’s (INTC) share fell to 65%, down 6.3% from last year and 2.1% from the fourth quarter of 2024. Interestingly, it is worth noting that AMD’s average selling prices only fell by 2% year-over-year, compared to an 11% drop for Intel. Lipacis said that AMD’s average selling prices have been more stable thanks to the rollout of its new Turin chips.
Meanwhile, Intel faced pricing pressure from increased demand for older products and edge processing units. In addition, Lipacis believes that Arm could keep growing in the server space, especially since companies like Nvidia (NVDA), Amazon (AMZN), and Google (GOOG) are adopting Arm-based chips like Grace, Graviton, and Axion. Microsoft (MSFT) is also seeing strong performance using Arm chips, especially for apps like Microsoft Teams and Azure SQL.
Which Chip Stock Is the Better Buy?
Overall, out of the two stocks mentioned above, analysts think that ARM stock has more room to run than AMD. In fact, ARM’s price target of $146.80 per share implies almost 11% upside versus AMD’s 8.9%.
