This Chipmaker Could Surpass Intel in CPU Market by 2027 as Agentic AI Fuels Growth, Top Analyst Says - M

Advanced Micro Devices (NASDAQ:AMD) is on track to surpass Intel Corp. (NASDAQ:INTC) in the CPU market, investment firm Raymond James projected.

Raymond James upgraded AMD to a strong buy from outperform and also raised its price target on AMD shares to $641 from $565, suggesting a 40% upside from Monday’s close, CNBC reported on Tuesday.

Analyst Simon Leopold stated on Tuesday, “AMD offers the strongest combination of direct earnings leverage, datacenter positioning and market-share gains.” He further noted that AMD’s growth trajectory should allow it to overtake Intel by 2027.

Raymond James anticipates the CPU market to reach approximately $201 billion by 2030. This comprises $33.5 billion in conventional data center CPUs, $83 billion in AI head-end CPUs, and $85 billion in agentic CPUs.

The firm expects the potential proliferation of agentic AI, or autonomous AI agents, to serve as the “principal new growth engine for the CPU market,” according to Leopold.