Analysts See AI Infrastructure Rotation Expanding Beyond Nvidia

He said the market is increasingly betting that AI data centers will require a broader mix of advanced hardware components beyond graphics processors.

Bank of America told CNBC that strong long-term demand growth for CPUs, estimating the data-center CPU market could expand from $27 billion in 2025 to $60 billion by 2030 as AI agents drive higher computing requirements.

At the same time, BTIG analyst Jonathan Krinksy told CNBC that the semiconductor rally resembles the late-1990s dot-com boom. He warned the sector could face a 25% to 30% correction after the unusually sharp run-up in chip stocks.

AMD Earnings Reinforce AI Growth Narrative

AMD shares rallied sharply after the company reported quarterly earnings, revenue, and guidance above analyst estimates, supported by strong data-center demand.

CEO Lisa Su said AI agents are creating "tremendous demand" across the AI adoption cycle.

She said the company has sharply raised its long-term outlook for the server CPU market, now expecting 35% growth over the next three to five years, versus its earlier 18% forecast from November. The updated outlook reflects stronger demand, likely driven by accelerating AI and data center spending.

Su also said AMD's data-center business has become the "primary driver" of the company's revenue and earnings growth.

She added that inferencing and agentic AI are increasing demand for high-performance CPUs and accelerators, while server growth should "accelerate meaningfully" as AMD scales supply capacity.

Wall Street Raises Forecasts On CPU, GPU Momentum

Following AMD's results, analysts at Goldman Sachs and Bernstein upgraded the stock to Buy ratings, citing improving CPU demand driven by AI workloads.

JPMorgan analysts told CNBC that AMD's latest earnings report highlighted a "structural inflection" across both server CPU and data-center accelerator growth trajectories.

Wedbush analyst Matt Bryson and his team raised their AMD price forecast to $450 and reiterated an Outperform rating.

The analysts told the Street on Saturday that AMD is benefiting from stronger unit sales and pricing tied to compute racks supporting agentic AI workloads. They also noted that rising CPU demand could offset any slower-than-expected GPU ramp.

Meanwhile, Citi analyst Atif Malik raised AMD's price forecast to $358 while maintaining a Neutral rating. Malik told the Street that Citi remains constructive on AMD's CPU opportunity tied to agentic AI demand.

However, the firm still wants to evaluate the performance of AMD's next-generation MI450 GPUs and Helios rack systems after launch.

AMD Price Action

AMD Price Action: Advanced Micro Devices shares were up 0.47% at $457.34 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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