Markets· August 16, 2026 at 04:15 p.m.
Bank of America Boosts AMD's Server CPU Market Forecast to $210 Billion
Key takeaways
- Bank of America Corporation raised AMD's server CPU market forecast to over $210 billion
- The bank expects the server CPU market to grow at a 36% compound annual rate
- AMD remains the bank's top CPU pick due to its 'dual leadership'
Advanced Micro Devices (AMD) has seen impressive growth over the past five years, delivering a 361.6% gain. Bank of America Corporation now expects the server CPU market to grow at a 36% compound annual rate, up from 30%, implying nearly 5x growth from the ~$35bn CY25 level. This expansion could give AMD more room to grow as AI agents increase demand for computing power across data centers. The firm sees CPUs as additive to overall system total addressable market, while near-record GPU rental prices plus memory spot prices point to a broader compute shortage.
