Bank of America Boosts Intel, AMD on $170B Server CPU Market Outlook
Intel and AMD shares surged after Bank of America upgraded Intel, projecting the server CPU market could reach $170 billion by 2030, driven by agentic AI. Intel saw an 8% stock increase with a price target of $135, while AMD rose 4%. This optimism follows recent positive financial results for Intel's data center segment.
Key points
- Intel's stock price increased by 8% following a bullish note from Bank of America.
- Bank of America upgraded Intel to a 'Buy' rating, setting a price target of $135.
- The firm forecasts the total addressable market for server CPUs could expand to approximately $170 billion by 2030.
- This market expansion is attributed to the growth of agentic AI workloads.
- Advanced Micro Devices (AMD) stock also saw a 4% rise.
- Intel's Q1 2026 revenue reached $13.58 billion, with its Data Center and AI segment growing 22% year-over-year to $5.05 billion.
Shares of semiconductor manufacturers Intel and AMD experienced significant gains following a positive research report from Bank of America. The financial institution issued a double upgrade for Intel stock, moving it to a 'Buy' rating with a price objective of $135. This upgrade was underpinned by improved earnings forecasts and anticipation of strong growth in the server CPU market.
Bank of America's analysis projects that the total addressable market for server CPUs could surge to an estimated $170 billion by the year 2030. This substantial expansion is expected to be propelled by the increasing demand for agentic artificial intelligence workloads. The positive outlook boosted Intel's stock by 8% and contributed to a 4% rise in AMD's share price.
The optimistic view on Intel is further supported by its recent financial performance. The company reported Q1 2026 revenue of $13.58 billion, a 7% increase year-over-year. Notably, its Data Center and AI segment demonstrated robust growth, generating $5.05 billion, which marks a 22% year-over-year improvement. Intel's CEO, Lip-Bu Tan, expressed confidence in the upcoming AI advancements, highlighting a shift towards bringing intelligence closer to the end user.
Sources
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