Bank of America raises AMD, ARM and Intel price targets on booming AI-driven CPU market

Bank of America analysts project the server‑CPU market to expand to more than $170 billion by 2030, driven by the rise of "agentic" AI that handles tasks such as email scanning and travel bookings. The firm lifted its price targets for several chip makers: AMD to $560, ARM to $335 and upgraded Intel to a Buy with a new target of $135. The analysts said the AI‑agent trend will sharply increase demand for CPUs in data‑center workloads.

Following the upgrades, Intel's shares jumped about 8% and AMD rose roughly 2% in pre‑market trading. The forecast also notes that Nvidia remains BofA’s top semiconductor pick, while other players like Qualcomm are preparing to enter the data‑center CPU space. The outlook anticipates a 37% compound annual growth rate for the CPU sector, underscoring the shift from GPU‑centric AI to broader CPU utilization.