Citigroup: MPU shipments increased by 10.8% month-on-month, with AMD (AMD.US) and Arm (ARM.US) taking market share from Intel Corporation (INTC.US)

Citigroup analysts cited data from Mercury Research saying that in the fourth quarter of 2024, both AMD and Arm saw an increase in market share in the microprocessor (MPU) market, while Intel Corporation saw a decline. Currently, Citigroup maintains a "neutral" rating for AMD and Intel Corporation, with price targets of $110 and $21, respectively. The report stated that in the fourth quarter, total MPU shipments increased by 10.8% compared to the previous quarter. AMD's market share rose from 21.6% to 22.1%, mainly due to growth in demand for laptops and servers. Arm's market share also increased slightly from 10% to 10.5%, driven by laptop demand as well. Despite Intel Corporation's market share declining by 1.4 percentage points compared to the previous quarter, this chip manufacturer still dominates the market with a 67.4% share. However, Citigroup pointed out that this is Intel Corporation's lowest market share since its model was established in 2002. Intel Corporation's desktop MPU market share increased by nearly 2 percentage points to reach 68.1%, but a slowdown in laptop and server shipments led to an overall decline in its market share. Citigroup analyst Christopher Danely stated in an investor report on Wednesday, "Laptop MPU shipments increased by 8.2% compared to the seasonal decline of 0.5%, desktop MPU shipments increased by 20.0% compared to the seasonal decline of 1.7%. Server MPU shipments increased by 7.0%, slightly lower than the seasonal increase of 7.8%."