CPU Market Soars as BofA Securities Predicts $210 Billion Opportunity by 2030
Nvidia has dominated the AI chip market so far, but BofA Securities believes that CPUs will take center stage in the coming years. With a $210 billion opportunity on the horizon, the bank expects server CPU revenue to rise from $61.4 billion in 2026 to $210.6 billion by 2030.
CPU's role is crucial as AI models evolve from answering questions to performing tasks autonomously. Unlike traditional servers where CPUs handle heavy calculations, AI servers rely on GPUs while CPUs coordinate the system. As AI agents become more prevalent, CPUs will shift from a coordinator to an orchestration layer.
The market share forecast suggests that Intel's share of overall server CPU revenue will decline from 34% in 2026 to 22% in 2030. Meanwhile, AMD is expected to remain relatively stable with its share moving from about 28% to 31%. ARM is the major winner here, as BofA Securities predicts it will represent 47% of server CPU value by 2030.
Despite this shift, BofA Securities still names AMD its 'top CPU pick' due to its wide breadth of portfolio and dual leadership in high-end AI server workloads. With a consensus Buy rating and an average price target of $550.86, investors are optimistic about the future of AMD's stock.