Server CPU Market 2025 — Competitive Landscape, Investment Implications, and Effects on the Second-Hand Market

Executive summary

2025 is a transitional year for server CPUs: x86 incumbents (Intel and AMD) remain the backbone of most enterprise racks while Arm-based designs (hyperscaler custom chips and third-party Arm vendors) continue to gain strategic traction—particularly for energy-efficient and AI-oriented workloads. Market revenue is growing modestly (low-single to mid-single digit CAGR vs. 2024), but structural change — driven by AI acceleration, hyperscaler custom silicon, and rack-scale solutions — is reshaping vendor share, product segmentation, and the flow of retired hardware into the second-hand channel. This briefing summarizes market size estimates, competitive positioning, technology trends, investment implications, and short-to-medium-term effects on the used/server resale market.

Market size & growth (short take)

• Revenue estimates vary by source, but independent market research places the server CPU (data-center CPU) market in the low tens of billions USD in 2025 (examples: ~USD 22–23B by one projection; other forecasts for related “data-center CPU” or “server CPU” definitions show similar ranges and rising multi-year CAGRs). These figures exclude the much larger GPU/accelerator market and broader server hardware spend.

Competitive landscape (who matters in 2025)

1. Intel (x86) — still the largest single vendor by shipment and continues to supply the majority of traditional enterprise servers. However, Intel’s share has been pressured by AMD gains and rising Arm deployments; Intel remains a default choice for enterprise compatibility and large OEM ecosystems.
2. AMD (x86 EPYC) — continued share gains in 2024–2025 driven by high-core-count EPYC variants and competitive price/performance in many cloud and enterprise segments; AMD’s revenue share in server segments has risen noticeably. AMD is also moving into rack-scale AI platforms (Helios) and broader data-center plays in partnership deals.
3. Arm ecosystem (hyperscaler & third-party) — Arm adoption is accelerating in hyperscalers (AWS Graviton, Google, Microsoft custom silicon, NVIDIA Grace derivatives, Ampere) and in power/price-sensitive edge/AI inference use cases. While Arm vendors and hyperscaler internal chips announced ambitious share goals, practical market share estimates in 2025 are still closer to mid-teens percent of data-center CPUs (growing fast, concentrated among hyperscalers). Expect Arm to continue taking share in cloud and AI/inference niches rather than wholesale enterprise replacement in 2025.

Key recent signals: AMD announced rack-scale Helios and secured cloud partnerships; hyperscalers continue to deploy custom Arm silicon; OEM/server builders are offering heterogeneous rack options integrating x86 and Arm nodes for mixed workloads.

Technology & demand drivers

• AI acceleration and memory-heavy racks: demand for high memory bandwidth and tight CPU-to-accelerator integration is driving new rack-level designs (GPU+CPU co-design). Vendors that align CPUs with GPU/accelerator ecosystems gain differentiation.
• Energy efficiency & TCO: Arm variants and newer x86 microarchitectures that improve perf/W are attractive for large cloud operators seeking lower total cost of ownership.
• Workload fragmentation: inference, training, storage, and control plane tasks favor different CPU choices — creating segmented demand rather than one-size-fits-all upgrades.
• Supply chain normalization: post-pandemic inventory normalization reduces severe supply shocks; pricing volatility still exists for specific generations tied to platform (DDR5 vs DDR4, PCIe gen differences).

Effect on the second-hand / ITAD market — short and medium term

1. Larger volumes of retired x86 servers and CPUs — As hyperscalers and enterprises refresh for AI or efficiency, more older-generation x86 (Xeon generations, earlier EPYC) servers will enter the used channel. IT asset disposition (ITAD) and refurbished server markets are expanding — multiple industry reports place the global data-center ITAD/refurbished servers market in the multi-billion-USD range in 2025 and project high single-digit to low-double-digit CAGRs ahead. That means increased supply and more organized secondary markets.
2. Price pressure on commodity 1st-gen & mid-gen server hardware — increased supply, combined with buyers’ preference for value, will depress prices for commodity used servers and CPUs (older Xeon/EPYC without AI accelerators). Expect sharp discounts for generic rack servers; margins will remain for certified refurbished units with warranties.
3. Premium for proven, high-utility used units — not all used inventory suffers equally. High core-count EPYC or certain Xeon generations that match many virtualization and general server needs will retain stronger resale value. Units that facilitate GPU pairing or have modern I/O (PCIe Gen4/5, large memory capacity) will command premiums.
4. Market segmentation & channel growth — more specialized buyers (edge providers, SMBs, research labs, GPU-poor startups) will compete for specific used items. Certified ITAD providers and brokers who can guarantee data security, traceability, and refurbishing will capture more value. Several market studies forecast multi-billion growth in ITAD/refurbished server channels through the decade.

Investment & business implications (for investors and operators)

• Investors: Favor companies exposed to AI infrastructure (vendors that combine CPUs + accelerators, cloud majors), and specialized ITAD/refurbishment platforms that can monetize surge volumes of decommissioned hardware. Be cautious on pure-play commodity server OEM valuations as hardware value mixes shift toward accelerators.
• Server OEMs & component suppliers: Invest in rack-scale integration, software stacks that simplify heterogenous deployment, and services (warranty, lifecycle management) to maintain higher margins.
• Resellers / ITAD players: Scale operations, invest in certification and secure data-erasure, and build buyer networks for GPUs and CPU+GPU combinations — these will be high-value second-hand assets.

Risks & what to watch (next 6–18 months)

• Hyperscaler self-sufficiency: Continued expansion of in-house Arm silicon could reduce third-party CPU demand for certain cloud workloads.
• Platform transitions: Rapid DDR/PCIe transitions can make otherwise modern CPUs less attractive on the used market if their platform lacks desired features.
• Geopolitical & trade constraints affecting supply chains and OEM capacity.
• GPU-first architectures: If GPU+CPU integrated stacks become dominant (NVIDIA-style solutions), standalone server CPU demand may shift meaningfully.

Recommended actions (practical)

• If you’re an investor: overweight infrastructure and select ITAD/secondary market players; underweight commodity server OEMs without clear AI strategy. Monitor large cloud buy commitments (Oracle, AWS, Microsoft, Google) for directional bets.
• If you’re an IT asset seller (enterprise/data center): engage certified ITAD partners, market GPUs and accelerator-equipped nodes separately, and prepare to segment inventory (premium refurbish vs bulk scrap) to optimize returns.
• If you’re a reseller/refurbisher: invest in testing for GPU pairing, ensure compatibility (platform, firmware), and offer warranties — these add significant buyer confidence and price upside.

P.S. This report is provided by BuySellRam.com, a platform to buy and sell computer parts. If you are interested in their businesses, please check some of their service pages: Sell CPU, Sell Test Equipment, Sell Network Equipment, Top Places to Sell GPU.

References

• Market size & forecasts (server/data center CPU): IntelMarketResearch (CPU for server 2025–2032). Intel Market Research
• Data center CPU market & projections (Precedence Research). Precedence Research
• Competitive share and trends: Tom’s Hardware — Q2 2025 AMD server share reporting. Tom's Hardware
• Arm adoption commentary and actual share context: Tom’s Hardware (Arm ambitions) and SemiEngineering (data about realized Arm share 2025). Tom's Hardware+1
• AMD rack-scale Helios announcement and Oracle collaboration: Tom’s Hardware; Reuters. Tom's Hardware+1
• ITAD / second-hand market growth and sizing: Fortune Business Insights, Mordor Intelligence, MarketResearch/IDC pieces on ITAD and refurbished servers. Fortune Business Insights+2Mordor Intelligence+2