Agentic CPUs Expected to Drive Explosive Industry Growth
Citigroup expects the global server CPU market to grow to roughly $132 billion by 2030, compared with an estimated $29.3 billion in 2025, with much of the expansion expected to come from emerging agentic CPU demand.
According to the brokerage, traditional general-purpose CPUs are projected to expand at a compound annual growth rate of 20%, reaching approximately $50.9 billion by 2030.
AI head node processors are forecast to grow at a 21% CAGR, climbing to around $21.1 billion by the end of the decade.
Agentic CPUs are expected to deliver the fastest growth, with Citigroup projecting a 185% compound annual growth rate that would lift the segment to about $59.4 billion by 2030.
Intel Expected to Remain Market Leader
Citigroup expects Intel (NASDAQ:INTC) to retain the largest share of the total CPU market through 2030, accounting for approximately 47% of industry revenue.
Advanced Micro Devices (NASDAQ:AMD) is projected to hold a 34% market share, while Arm-based (NASDAQ:ARM) processors and other competitors are expected to make up the remaining 19%.
Citi Raises Intel and AMD Price Targets
The brokerage increased its price target on Intel to $130 from $95 while maintaining a buy rating on the stock.
Citigroup also raised its target price on AMD to $460 from $358, while keeping a neutral rating on the company.
AI Deployment Shift Creates New CPU Opportunities
Citigroup noted that Intel, AMD and Arm-based chipmakers are increasingly focusing on CPU opportunities as major cloud providers redirect spending away from training artificial intelligence models and toward deploying them in production environments.
Semiconductor Stocks Continue Strong Rally
Intel shares have climbed approximately 195% since the start of the year, while AMD stock has advanced roughly 98% over the same period.