Raymond James upgraded Advanced Micro Devices (AMD) to Strong Buy on Tuesday, citing the chipmaker’s direct earnings leverage, datacenter positioning and expanding market share.
Analyst Simon Leopold raised his price target and reiterated a bullish outlook for the server CPU market, forecasting total revenue to reach $201 billion by 2030. The projection breaks down into $33.5 billion for conventional datacenter CPUs, $83 billion for high-end AI CPUs and $85 billion for agentic CPUs, which power persistent AI agents executing orchestration, database, sandbox and tool-execution workloads.
Leopold’s base case aligns closely with Nvidia’s long-term framework of $200 billion, while AMD’s internal estimate of $220 billion remains achievable under a more aggressive scenario tied to higher agent adoption. The server CPU market is expected to expand at a compound annual growth rate of 44% over the next five years, driven primarily by the rise of agentic AI.
Demand growth is projected to scale with the number of active agents, workflow duration and concurrent concurrency rather than model parameters or token generation. However, Raymond James cautioned that workload increases will not fully translate into chip shipments, as higher utilization rates, software efficiency gains, custom silicon and offloading to accelerators will absorb part of the demand.
The brokerage also highlighted Arm’s expected benefits from server royalty growth and custom chip demand, while noting Intel’s continued exposure to market share losses despite a more favorable market backdrop.
