Key takeaways
- UBS reported a 31% year-over-year increase in global server CPU shipments in Q3 2026
- AMD maintained a 28.4% server CPU market share
- UBS projected that the CPU market could reach approximately $210 billion by 2030
Advanced Micro Devices (AMD) received another boost on Nov. 11, after a new UBS report revealed that global server CPU shipments surged 31% year over year in the third quarter of 2026. The findings revealed growing demand for data center processors, which strengthened the outlook for AMD.
AMD shares rallied during Wednesday's session, supported by the encouraging UBS findings and strong earnings from AI cloud computing company CoreWeave.
UBS Reports Strong Server CPU Demand
According to UBS analyst Timothy Arcuri, global server CPU shipments increased approximately 31% compared to the previous year and 6% from the preceding quarter. The quarterly growth exceeded the typical seasonal increase of around 3%.
AMD maintained approximately 28.4% of the server CPU market by unit shipments, while rival Intel saw its share decline by 2.4 percentage points to 51.5%. Meanwhile, Arm-based processors gained 2.5 percentage points, reaching 20.1%.
Although AMD's market share stayed relatively stable, the rapid expansion of the overall market suggests the company is benefiting from increased demand for its EPYC server processors.
UBS Predicts $210 Billion CPU Market by 2030
Looking ahead, UBS expects artificial intelligence to become an important driver of CPU demand. As AI agents and advanced computing applications become more widespread, data centers will require more CPUs to support the powerful GPUs responsible for processing AI workloads.
UBS estimates that unconstrained demand could support a CPU market exceeding $500 billion by 2030. However, memory supply shortages could limit the achievable market to approximately $210 billion.
If AMD maintains its current market share, the expanding industry could present huge revenue opportunities, although its future revenue share will depend on pricing and product mix.
Lisa Su's AMD Benefits From Expanding AI Infrastructure
The UBS findings follow AMD's strong third-quarter earnings, which showed growing demand for its data center products. The chipmaker reported record quarterly revenue of $13.4 billion, representing 45% year-over-year growth. Its data center division generated approximately $8.5 billion, nearly doubling from the previous year.
Su attributed the performance to strengthening demand for AMD's Instinct AI accelerators and EPYC server processors.
Meanwhile, CoreWeave's plans to invest between $37 billion and $39 billion in capital expenditures provided another encouraging signal for semiconductor companies supplying data center infrastructure.
Together, the developments suggest AMD could benefit from continued AI infrastructure investment, although memory shortages and rising component costs are still potential obstacles to growth.
