Citi forecasts server CPU market to hit $132B by 2030

Investing.com -- Citi analysts introduced a new server CPU total addressable market model on Monday, projecting the market will expand to $132 billion by 2030, representing a 35% compound annual growth rate from $29.3 billion in 2025.

The model encompasses general purpose CPUs, AI head nodes, and agentic CPU applications. Citi expects agentic CPUs to drive growth with a 185% CAGR, reaching $59.4 billion and representing 45% of the total market by 2030. General purpose CPUs are forecast to grow at a 20% CAGR to $50.9 billion, while AI head nodes are projected to expand at a 21% CAGR to $21.1 billion.

By 2030, Citi projects Intel (NASDAQ: INTC) will hold 47% market share, Advanced Micro Devices (NASDAQ: AMD) will capture 34%, and ARM and other competitors will account for 19%.

The firm raised its price target on Intel to $130, citing increased data center sales estimates based on the updated CPU model and potential gains from Intel's ASIC business, including its Mount Evans IPU used by Google and Anthropic.

Citi also lifted its price target on AMD to $460, increasing data center sales projections in line with the new CPU model. Based on industry discussions, Citi believes AMD has secured Anthropic as a customer for its MI450 AI accelerator and expects an announcement at AMD's Advancing AI day in July.

The analysts view AMD as a potential primary beneficiary of what they term the CPU renaissance, citing the company's performance leadership and capacity allocation at Taiwan Semiconductor Manufacturing Company.

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