AMD CEO: Surge in CPU Demand Driven by AI Adoption
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: stocktwits
- Surge in CPU Demand: AMD CEO Lisa Su noted that CPU demand has surged due to the growing adoption of AI inference and agentic AI workloads, exceeding expectations from a year ago, with an anticipated annual growth rate of 35% over the next five years.
- Supply Bottlenecks Addressed: Although CPU supply is currently constrained, Su indicated that the industry's underestimation of demand has led to bottlenecks that are being resolved quickly, enhancing AMD's competitive position in the market.
- Early Stage of AI Industry: Su emphasized that the AI industry is still in its early innings, with businesses gradually realizing the value of artificial intelligence, driving increased demand for CPUs, and projecting that the CPU market will exceed $120 billion by 2030.
- Strong Stock Performance: AMD's stock has surged 120% year-to-date and 325% over the past 12 months, reflecting strong market confidence in its growth potential, despite bearish sentiment among retail investors.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 518.090
Low
210.00
Averages
289.13
High
377.00
Current: 518.090
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Growth Outlook: Arm anticipates that its direct chip sales will reach $15 billion by 2031, potentially generating $7.5 billion in gross profit, showcasing a remarkable growth trajectory compared to its gross profit of $4.8 billion in 2025, reflecting strong future demand.
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See More
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- Market Structure Shift: Technology now constitutes 35% of the S&P 500, while other sectors lag behind, indicating that the rally is heavily reliant on a few stocks, which increases market vulnerability.
- Declining Economic Confidence: Despite the stock market's rise, manufacturing activity remains uneven, consumer confidence has plummeted, and spending has slowed in several categories, suggesting that the overall economic health is not improving in tandem with the market.
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- Strong Profit Outlook: The company anticipates revenue of $91 billion for the current quarter, representing a 95% year-over-year increase, with a projected non-GAAP gross margin of 75%, indicating sustained improvement in profitability.
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- UBS Price Target Increase: UBS raised Micron's price target to $1,625, implying a 67% upside from Friday's close, as analysts believe the market will assign a more 'normal' valuation multiple as AI drives structural changes in the memory sector.
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See More
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- Significant Investment Returns: Glen Kacher, founder of Light Street Capital, has demonstrated outstanding performance over the past three years, with his fund generating returns of 45.7%, 59.4%, and 37.3% in 2023, 2024, and 2025 respectively, showcasing the success of his investment strategy in the semiconductor sector.
- Custom Chip Market Potential: Broadcom shows immense growth potential in its custom AI chip business, with projected revenues exceeding $100 billion by fiscal 2027, while analysts forecast AI revenues to reach $180 billion by fiscal 2028, reflecting strong demand in the data center market.
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See More
