AMD
The AI story just got a CPU sequel
For the last few years, AI has basically been the Nvidia show. GPUs got the glory, the headlines, and the absurd valuation debates. But Bank of America is floating a fresh plot twist: the next big AI bottleneck may be the CPU — the part that keeps all the expensive GPU muscle from sitting around twiddling its thumbs.
On Thursday, analyst Vivek Arya raised his price objective on Advanced Micro Devices from $620 to $720 and kept a Buy rating. The pitch is simple: if AI agents are going to become the software equivalent of over-caffeinated interns, they’ll need CPUs to handle the busywork — calling tools, running code, fetching documents, and querying databases.
Why this matters for your portfolio
That matters because the expensive part of the AI stack isn’t just the shiny accelerator anymore. If CPUs become the traffic cops of agentic AI, then chip demand could get a lot broader — and AMD wants a front-row seat.
BofA’s model sees server CPU sales climbing from $61.4 billion in 2026 to $210.6 billion by 2030, with AI-related chips making up 86% of that market by the end of the forecast. Translation: this isn’t a side quest. It’s a potentially huge second act for a part of the chip market that has spent years in the supporting cast.
The real-world test is already here
The thesis isn’t just theoretical. Akamai announced an $11.6 billion, seven-year agreement with Anthropic aimed at supporting growing CPU workloads, with the deal potentially expanding by another $9 billion. That’s the kind of customer spending that makes Wall Street sit up straighter.
Bank of America says AMD is best positioned because it has the broadest portfolio across the two big CPU design approaches: fewer, faster cores versus more cores handling more tasks at once. The bank also nudged its valuation multiple higher and now sees roughly 14% upside from Thursday’s close.
Big picture
Nvidia may still be the king of AI, but the throne room could need a lot more CPUs than anyone expected. If AI agents keep multiplying like power users in a Slack workspace, AMD’s suddenly looking less like a backup singer and more like part of the main act.