AMD and Intel are experiencing a resurgence as the demand for central processing units (CPUs) increases, driven by the recent popularity of personal AI agents like Meta's Muse and OpenAI's Dots. These agents require CPUs for their long-running tasks, shifting some workload away from Nvidia's graphics processing units (GPUs).
AMD's stock has surged 32% this year, while Intel's has risen 21%, reflecting strong market performance. AMD's data center revenue more than doubled to $6.7 billion in the last quarter, highlighting the growing importance of CPUs in AI applications. Analysts predict that the CPU market could reach $220 billion by 2030, with AMD aiming to capture over half of that market.
The competitive landscape is evolving, with companies like Nvidia also entering the CPU space, but AMD currently holds a strong position, particularly among hyperscalers. As the demand for personal AI agents grows, the CPU segment is expected to see accelerated growth, benefiting AMD and Intel significantly