Mercury Research reports that desktop CPU shipments from AMD and Intel were "ugly" in Q2 2026, declining over 20% year-on-year. While the total market for X86 and ARM CPUs grew 10% sequentially, both major chipmakers saw significant annual desktop losses.
AMD fared better than Intel, recording a smaller sequential decline and gaining market share both quarterly and annually. However, the broader PC market continues to struggle with falling shipments, while smartphone sales are projected to drop by 14.3%.
Growth in server and mobile CPU segments provided a buffer, but an AI server boom has triggered a global memory shortage. These component constraints and high storage prices persist as the industry pivots toward high-performance computing infrastructure.