Servers using AMD and Intel x86 chips have shrunk to a level just over half of total server revenue, The Register reported on June 16, citing market researcher IDC.

IDC's first-quarter 2026 server market data showed non-x86 server revenue came to $58.7 billion, up 107 percent from a year earlier. It accounted for 47.9 percent of total server market revenue and is quickly narrowing the gap with x86 servers, The Register reported.

The surge in non-x86 revenue was driven by demand for systems based on Nvidia AI chips with Arm cores. Total server market revenue in the first quarter was $122.6 billion, up 30.4 percent from a year earlier. x86 server revenue was $63.9 billion, down 2.9 percent. The Register reported that shortages of components for general servers contributed, after memory chipmakers prioritised DRAM and NAND flash production capacity for higher-margin AI servers and GPUs.

Revenue from GPU-accelerated servers was $68.9 billion, up about 25 percent from a year earlier. Revenue from other accelerated servers equipped with FPGAs or ASICs instead of GPUs was $17.7 billion, up 122 percent.

Juan Seminara (후안 세미나라), IDC's research director, said companies are not cutting infrastructure investment but are unable to secure servers quickly enough to meet their needs. He said new workloads such as agentic applications and physical AI ecosystems will keep lifting demand over the long term. IDC also forecast that supply will normalise from 2027.