AMD, ARM, INTC, NVDA Get A Fresh AI Tailwind - BofA Sees Agentic AI Expanding Server CPU Market To $170B

Agentic AI could unlock a much larger opportunity for chipmakers than previously expected, according to Bank of America.

• BofA raised AMD’s price target to $560 from $500 and reiterated its Buy rating, while naming NVDA its top sector pick.
• BofA also raised the price target on ARM and double-upgraded Intel to ‘Buy’ rating.
• Last month, BofA highlighted Apple as a potential beneficiary of agentic AI.

Bank of America sees the emergence of agentic AI as the next powerful growth engine for the semiconductor industry, creating a multibillion-dollar opportunity for chipmakers such as Nvidia, AMD, Intel, and Arm as businesses invest heavily in AI infrastructure.

AMD and ARM shares traded over 2% higher in pre-market trading on Thursday, INTC stock surged 5%, while NVDA edged up 1%.

BofA Raises CPU TAM Estimate To More Than $170B

Following discussions with industry executives and customers last week at the BofA Global Tech Conference, the brokerage raised its estimate for the global server CPU market to more than $170 billion from its earlier forecast of $125 billion, implying nearly five-times growth and a 37% compound annual growth rate (CAGR) over calendar 2025-30.

The firm believes the rise of agentic AI, systems capable of carrying out complex tasks with limited human input, will create a major growth opportunity for both traditional x86 processor makers and companies developing ARM-based chips.

INTC Sees A Double Upgrade, AMD And ARM Get Target Hikes

As a result, BofA double-upgraded Intel to ‘buy’ while raising its price targets on AMD to $560 from $500, representing a potential upside of nearly 24% from Wednesday’s close. The brokerage also raised Arm’s price target to $335 from $245, implying a 9% potential upside.

NVDA Remains Top Semiconductor Pick

However, Nvidia remains BofA’s preferred sector pick, with analysts pointing to the company’s strong position across processors, graphics chips, and networking technologies.

Siri Boost For Apple’s Earnings

Last month, BofA highlighted Apple as a potential beneficiary of agentic AI. It recently raised its target on the iPhone maker, arguing that a more capable AI-powered Siri could open new revenue streams through search, commerce, payments, and app interactions, potentially boosting Apple's earnings over the long term.

The firm estimated that Siri could generate an additional $15 billion to $30 billion in revenue by fiscal 2030 under its base-case scenario, with the opportunity rising to $40 billion to $65 billion in a bullish scenario. That could boost Apple's earnings by as much as $2 per share.

Retail Turns Bearish After Sharp Rally This Year

Retail sentiment surrounding ARM, INTC, NVDA and AMD on Stocktwits trended in the ‘bearish’ zone.

Despite the sentiment, investors have piled into the stocks this year, sending Intel surging 197%, ARM soaring 182%, and AMD up 113%. NVDA shares gained more than 6%.

Meanwhile, the iShares Semiconductor ETF (SOXX) has gained around 79% in 2026.

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