US Semiconductors: Rise of the Agents: raising CPU TAM to $170bn

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US Semiconductors: Rise of the Agents: raising CPU TAM to $170bn

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US Semiconductors

Rise of the Agents: raising CPU TAM to

$170bn

Price Objective Change

CPU reborn: Agentic AI drives 5x demand 11 June 2026 Corrected

Based on our analysis and recent industry discussions at BofA Global Tech Conference Equity

(see our conf takeaways), we raise our CY2030E server CPU TAM to $170bn+ (from United States

$125bn), implying nearly 5x growth and +37% CAGR over CY25-30E (vs. +29% prior). Semiconductors

We view the emergence of agentic AI as a powerful demand accelerant that expands the Vivek Arya

CPU opportunity and lifts both x86 incumbents and ARM challengers. Against this Research Analyst

backdrop, we raise our AMD PO to $560 from $500 on higher CPU/GPU estimates, ARM BofASvivek.arya@bofa.com

to $335 from $245 on greater l-t chiplet potential; INTC is double-upgraded to Buy with Duksan Jang

a $135 PO (see our INTC standalone U/G report), with higher estimates now reflecting Research Analyst

BofAS

both n-t CPU and l-t foundry upsides. NVDA remains our top sector pick on full-stack AI duksan.jang@bofa.com

leadership, benefiting from tight CPU-GPU-networking integration, also poised to Michael Mani

benefit from agentic CPU. QCOM is expected to announce new AI CPUs at its Jun-24 AI Research Analyst

Day in NYC, but we maintain Underperform given tough competition and limited SAM. michael.mani@bofa.com

Agentic workloads shift complexity to CPUs from XPUs LiamResearchPharrAnalyst

Agentic AI differs from traditional genAI by shifting from a single prompt-response liam.pharr@bofa.com

workflow to a multi-step system that plans, reasons, retrieves info, uses tools, executes

code simultaneously. While XPUs remain critical for inference, many orchestration and