Intel (NASDAQ:INTC) shares slid about 4% on Wednesday after Citi reported the company's processor market share fell to its lowest level since 2002, according to a research note.

Warning! GuruFocus has detected 7 Warning Signs with INTC.Intel (INTC) Shares Tumble After Market Share Hits Lowest Since 2002

Arm (ARM) captured 13.6% of global unit shipments in Q1 2025, up from 10.8% in the prior quarter, eating into Intel's share, which dipped to 65.3% from 67.1%, Citi analysts led by Andrew Walker wrote.

Advanced Micro Devices (AMD) also saw a slide in its slice of the pie, dropping to 21.1% from 22.1%. Despite the loss, AMD shares climbed about 6% after the board approved a $6 billion buyback.

The chip sector has rallied this month amid a U.S.China tariff truce and booming AI partnerships. So far in May, AMD is up 19%, Arm has risen roughly 13%, and Intel has inched up 12% year-to-date before today's pullback.

Citi maintained Neutral ratings on Intel and AMD, noting that market-share shifts reflect gradual portfolio realignments rather than sudden fundamental changes. The firm added that Saudi Arabia's recent AI compute deals could further reshape competitive dynamics.

This article first appeared on GuruFocus.

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