Server CPU shipments are projected to grow by 31% year-on-year in 2026 and by more than 40% in 2027, driven by rising artificial intelligence (AI) inference workloads and adoption of agentic AI services, according to TrendForce. The research firm said demand has increased since the second half of 2025 as AI service providers introduce AI agent applications. As inference workloads expand in cloud data centers, server configurations are expected to shift toward a higher proportion of CPUs relative to GPUs and application-specific integrated circuits (ASICs). Based on planned rack configurations and growth projections from major cloud providers, TrendForce expects the CPU-to-GPU/ASIC ratio to move from around 1:8 toward 1:2 or even 1:1. Intel Corp. and AMD together accounted for nearly 90% of the server CPU market in 2025, while ARM-based processors had recently passed the 10% threshold. TrendForce expects ARM’s share to exceed 20% in 2026 as shipments grow faster than those of x86 processors. Intel’s shipment growth has been constrained by process and packaging challenges affecting its newer products, as well as limited internal manufacturing capacity. The company continues to rely on its Emerald Rapids and Granite Rapids processor lines, which has limited its ability to meet customer demand and contributed to a decline in market share. AMD’s Genoa and Turin platforms remain its main shipment drivers, while its next-generation Venice processors entered small-scale mass production in 2026. Although capacity constraints at TSMC have limited its ability to take additional orders, TrendForce estimates AMD’s server CPU market share will rise to about 27% in 2026. ARM-based deployments are expanding across major cloud and AI infrastructure providers. AWS continues to deploy its Graviton processors, while demand for NVIDIA Grace CPUs is increasing. Google’s Axion processors have entered high-volume shipments, and Microsoft’s Cobalt 100 and Arm’s internally developed AGI processors have also entered mass production and shipment. TrendForce projects ARM-based CPUs will account for approximately 30% of the server CPU market in 2027. Growth is expected to be led by a substantial increase in NVIDIA Vera CPU shipments, alongside higher-volume production of processors from Google, AWS, Microsoft, OpenAI, Arm and Huawei. Alibaba is also preparing to introduce its Yitian 720 and 730 CPUs. Within the x86 segment, Intel’s next-generation processors are expected to remain in limited supply. AMD is projected to maintain steadier shipments and gain further market share, supported by new products planned for launch in the first half of 2027. The post TrendForce Forecasts Server CPU Shipments to Rise More than 40% in 2027 appeared first on EE Times Asia .