Citigroup projects the server CPU market will grow substantially over the coming years, rising to approximately $132 billion by 2030 from $29.3 billion in 2025. The brokerage attributes the bulk of that increase to the emergence and rapid growth of agentic CPUs.
In its forecast, Citigroup breaks the market into three primary segments. General purpose CPUs are expected to expand at a compound annual growth rate of 20% to reach $50.9 billion by 2030. AI head nodes are projected to grow at a 21% CAGR, arriving at $21.1 billion in 2030. The strongest projected expansion is for agentic CPUs, which Citigroup estimates will grow at a 185% CAGR and account for $59.4 billion of the market by 2030.
On market share, Citigroup anticipates Intel will retain a plurality of the server CPU market, holding a 47% share by 2030. Advanced Micro Devices is forecast to command 34%, while Arm and other competitors are expected to make up the remaining 19% of the market.
The brokerage adjusted its price targets in response to these projections. Citigroup raised its target on Intel to $130 from $95 and maintained a buy rating on the stock. For AMD, the bank increased its price target to $460 from $358 while keeping a neutral rating.
Citigroup also noted a shift in cloud-provider priorities that is relevant to CPU demand: providers are moving focus from training AI models to deploying them. That shift is identified as a part of why vendors are placing greater emphasis on CPU opportunities tied to deployment workloads.
Citigroup's report highlighted recent investor moves in the sector. Intel shares have risen about 195% year to date, while AMD shares have increased roughly 98% over the same period.
Context and implications
The projections outline a market in which agentic CPUs become a major driver of server-level investment. The expected scale of agentic CPU adoption, according to Citigroup, would reshape the revenue mix across CPU categories by 2030, increasing the relative importance of specialized deployment processors alongside growth in general purpose and AI head node chips.
Citigroup's adjustments to price targets and ratings reflect the brokerage's view of how these trends could influence vendor economics and competitive positions through the end of the decade.