Agentic Processing Seen as Main Driver of Future Growth
Citigroup expects the server CPU industry to expand dramatically over the next several years, projecting the market will grow from $29.3 billion in 2025 to roughly $132 billion by 2030.
The firm said much of that growth is expected to come from agentic CPUs, an emerging category tied to increasingly autonomous artificial intelligence workloads.
Citigroup estimates that general-purpose server CPUs will grow at a 20% compound annual growth rate and reach approximately $50.9 billion by 2030.
AI head node processors are forecast to increase at a 21% CAGR to around $21.1 billion during the same period.
Agentic CPUs are expected to post the strongest gains, with Citigroup projecting a 185% annualized growth rate that would expand the segment to roughly $59.4 billion by 2030.
Intel Expected to Hold Leading Position
The brokerage believes Intel (NASDAQ:INTC) will continue to lead the global CPU market by the end of the decade with an estimated 47% market share.
Advanced Micro Devices (NASDAQ:AMD) is projected to capture 34%, while Arm (NASDAQ:ARM) and other competitors are expected to account for the remaining 19%.
Citi Raises Targets on Intel and AMD
Citigroup raised its price target on Intel to $130 from $95 and maintained a buy recommendation on the stock.
The firm also lifted AMD’s target price to $460 from $358 while reiterating a neutral rating.
Cloud Providers Shift Focus Toward AI Deployment
Citigroup said Intel, AMD and Arm competitors are increasingly pursuing CPU-related opportunities as hyperscale cloud providers transition from spending heavily on AI training toward deploying AI systems commercially.
Chip Stocks Continue to Rally Strongly
Intel shares have surged roughly 195% year to date, while AMD has gained approximately 98% over the same period.
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