Citigroup has released a comprehensive analysis projecting significant growth in the server CPU market, anticipating it will soar to around $132 billion by 2030, a substantial increase from approximately $29.3 billion in 2025. This burgeoning market expansion is primarily attributed to the rise of agentic CPUs, which are set to revolutionize performance metrics.
According to the brokerage’s forecast, general-purpose CPUs are expected to witness a robust compound annual growth rate (CAGR) of 20%, reaching nearly $50.9 billion by 2030. Meanwhile, AI head nodes are projected to grow at an even faster rate of 21%, with estimates suggesting their market value will reach approximately $21.1 billion by 2030. Notably, agentic CPUs are anticipated to dominate the growth trajectory, with a staggering CAGR of 185% that could elevate their market valuation to $59.4 billion within the same period.
As competition heats up, Citigroup estimates that Intel will hold a commanding 47% share of the overall CPU market by 2030, while Advanced Micro Devices (AMD) is expected to secure 34%. Other competitors will make up the remaining 19% of the market share.
In response to these developments, Citigroup elevated its price target for Intel from $95 to $130, maintaining a buy rating on the stock. For AMD, the brokerage increased its price target from $358 to $460 but has opted for a neutral rating.
Both Intel and AMD, along with Arm, are increasingly focusing on CPU opportunities as cloud service providers transition their strategies from merely training AI models to actively deploying them in diverse applications.
The stock performances of Intel and AMD have been impressive this year, with Intel shares climbing approximately 195% and AMD experiencing a rise of around 98% year to date. This suggests a growing investor confidence in the potential of the CPU market and innovative developments in AI technologies.
