Citigroup boosts CPU market forecast to $300 bln on agentic AI growth
AMD•Citigroup raised its 2030 CPU market forecast to $300 billion from $237 billion, expecting the market to grow from $29 billion in 2025 as agentic AI drives demand. It also raised its AMD price target to $800 from $575.
1. Higher CPU market forecast
Citigroup raised its forecast for the 2030 total addressable CPU market to $300 billion from $237 billion, citing the rollout of several personal AI agents. It expects the market to grow from $29 billion in 2025.
2. AMD seen as top beneficiary
Citigroup said AMD would be the biggest beneficiary of a rebound in CPU demand, with Intel a secondary beneficiary. It raised its AMD price target to $800 from $575.
3. CPU capacity demand
Citigroup said agentic AI may drive more computing demand than traditional chatbots and that CPUs are becoming a bottleneck as AI agents require increasingly more CPU capacity relative to GPUs. AMD CEO Lisa Su said Tuesday the company plans to sharply increase chip supply in 2027 and is working with suppliers to ramp up CPU and GPU production.
