Semiconductor stocks advanced Friday after analysts highlighted the growth potential of the Artificial Intelligence infrastructure market. Advanced Micro Devices was up 5%, Intel was up 6%, and Arm Holdings was up 11%. The gains reflected renewed attention on how chipmakers beyond Nvidia could benefit as Artificial Intelligence workloads broaden from model training into more complex applications.
Analysts at Bank of America expect the global server central processing unit market to grow almost fivefold to over ?bn by 2030, driven by a forthcoming boom in agentic Artificial Intelligence applications. While Artificial Intelligence model training largely relies on graphics processing units designed by companies such as Nvidia, central processing units are useful during parts of Artificial Intelligence agent workflows, including control logic, plan execution, coordination, and scheduling.
Intel and AMD dominate the server central processing unit market, leaving both companies well-positioned if demand grows as projected. Arm also stands to benefit after unveiling its new AGI central processing unit, which is designed to power next-generation Artificial Intelligence infrastructure. The focus on central processing units suggests investors may have multiple ways to gain exposure to Artificial Intelligence hardware demand, beyond graphics processing units alone.
Bank of America analysts also expressed optimism about Intel’s foundry business. Intel designs and builds its own chips, and it has opened its manufacturing services to other major technology companies. Intel is reportedly in discussions with Apple to potentially produce some of the chips used in Apple devices.
Citigroup analysts believe AMD could take some graphics processing unit market share from Nvidia. That potential shift is tied in part to AMD’s chip supply deals with Meta Platforms, which remains a major buyer of Artificial Intelligence infrastructure.
