Mercury Research blames costly memory and scarce GPUs for 20% processor shipment slide
The processor market is sending mixed signals, with server and mobile shipments rising while desktop CPU volumes decline amid higher system prices. Meanwhile, AMD's House of Zen has taken market share from Intel across every category.For Q2 2026, Mercury Research says total processor shipments were lower than in the same period a year ago, attributing this to much lower system-on-chip (SoC) and embedded volumes due to AMD's declining games console business, plus a large drop in desktop CPU volumes.Mercury associates the decline in desktop chips with weaker demand for high-end gaming PCs. Although the second quarter is not typically strong for consumer sales, it adds: "We believe that higher PC prices and limited GPU supplies are having a significant impact on end demand for desktop PCs, and thus desktop CPUs, as well."
Those higher PC prices are the result of increases in the cost of memory components due to a shortage caused by chipmakers prioritizing output of more profitable high-bandwidth memory chips used in AI servers, as The Register has been covering for some time. A shortfall in the availability of consumer GPUs appears to have much the same cause.
