'The end of an era for Intel'—AMD just took the server CPU crown

Despite this year’s 30% rally, Advanced Micro Devices (AMD) may still be flying under Wall Street’s radar after officially overtaking Intel (INTC) in the server CPU market for the first time in decades.

As of July 21, AMD captured 50% of server CPU market share, according to fresh data from PassMark Software. While the firm’s quarterly tracker still shows Intel with a slight edge, AMD appears to have pulled ahead in real-time usage data this month.

“It marks the end of an era for INTC,” wrote analyst Daniel Romero, referencing the shift.

Intel and AMD have long dominated the microprocessor wars. And while Intel has held the crown for most of that history, AMD has gained serious ground in recent years, even being called Intel’s “only competitor” back in 2021 by Investopedia.

The stock hasn’t fully kept up with the company’s momentum.

AMD shares are up 30% year-to-dare but have barely moved over the past 12 months.

That’s a sharp contrast to the S&P 500, which has climbed 16% over the same period, with tech and communications stocks up 18% and 25%, respectively.

On Thursday, AMD rose another 2.2% to close at $162.12. That’s still nearly 20% below its record high, and well behind the S&P 500, which notched another all-time high the same day.

Analysts like the setup, but not the hype

Wall Street remains bullish on AMD, but some say AI expectations may be running too hot.

Morgan Stanley recently flagged “limited upward revision potential for AI” as a reason to tread carefully. Their more cautious stance is due to trade tensions, which could weigh on server players in the second half.

So far, however, the trade war hasn’t hit AMD’s bottom line. In Q1, the company reported earnings of $0.96 per share on $7.14 billion in revenue, beating estimates across the board.

Revenue jumped 36% year-over-year while net income is up 476%.

“Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution,” said CEO Lisa Su.

“We’re positioned well for strong growth in 2025.”

AMD will report Q2 earnings on Aug. 5. Analysts expect another solid print, with earnings projected to grow 31% year-over-year and revenue to land near $7.4 billion.

The company continues to expand its AI infrastructure footprint, even as investor expectations remain a point of debate. And with momentum shifting in its favor, the second half of 2025 could be AMD’s to lose.