Citigroup boosts CPU market forecast to $300 bln on agentic AI growth
BUZZ-Citigroup boosts CPU market forecast to $300 bln on agentic AI growth ** Citigroup on Tuesday raised its 2030 CPU total addressable market forecast to $300 billion from $237 billion, citing the recent rollout of several personal AI agents, including Muse, Dots, Instinct, GrokBot, and GeminiSpark
** Brokerage views agentic AI as a potentially much bigger driver of computing demand than traditional chatbots and expects CPU market to grow from $29 bln in 2025 to $300 bln by 2030
** It says agentic AI is emerging as a new use for CPUs, which are increasingly handling the reasoning, data processing and security needed to run autonomous AI agents
** Citigroup also raised PT for AMD AMD.O to $800 from $575, implying 26.6% upside to its last close
** Adds that AMD will be the biggest beneficiary of a rebound in CPU demand, with Meta among its largest server customers and names Intel INTC.O as a secondary beneficiary
** AMD plans to sharply increase chip supply in 2027 to meet surging AI demand, CEO Lisa Su said on Tuesday, adding that co is working with suppliers to ramp up CPU and GPU production
** Citigroup says CPUs are becoming a bottleneck as agentic AI requires increasingly more CPU capacity relative to GPUs.
(Reporting by Kanishka Ajmera in Bengaluru)
((mail to: Kanishka.Ajmera@thomsonreuters.com))
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