AI Agents Spark 'Supercycle' for Server CPUs, Market to Hit $132 Billion by 2030: Citi Lifts Intel, AMD Targets

Citi forecast on Tuesday that the global server CPU market will surge to $132 billion by 2030 from $29.3 billion last year, driven by an explosion in AI agent workloads that demand a new class of “agentic” processors. The bank sees agentic CPUs growing at a 185% compound annual rate to $59.4 billion, while general‑purpose server CPUs expand 20% to $50.9 billion and AI head‑node processors rise 21% to $21.1 billion. The structural shift from GPU‑centric computing is straining supply: data‑center CPU‑to‑GPU ratios are tightening to as low as 1:1 from 1:8, according to TrendForce. Intel and AMD have already raised chip prices, and Nvidia and Arm have entered the server CPU market. Based on the outlook, Citi raised its Intel (INTC) price target to $130 from $95 with a buy rating, and lifted Advanced Micro Devices (AMD) to $460 from $358 while maintaining a neutral rating.