AMD Stock Surges 15% as Lisa Su Doubles CPU Market Forecast on AI Agent Boom

CNBC reported Wednesday that Advanced Micro Devices CEO Lisa Su attributed a sweeping upgrade to her long-term AMD server CPU forecast to the explosive growth of agentic artificial intelligence, sending the chipmaker’s shares up roughly 15% on the session.

AI Agents Reshape Chip Demand

Su told CNBC’s “Squawk on the Street” that AI agents are generating extraordinary pressure on compute infrastructure. She said visibility into the shift sharpened considerably over the past three months, driven by direct conversations with AMD’s largest customers. The demand pivot, she explained, is moving workloads in ways that favour central processing units alongside the graphics processors that have dominated recent AI buildouts.

AMD beat Wall Street expectations on both earnings per share and revenue for the first quarter. Total revenue climbed 38% compared with the same period a year earlier, with the data centre segment leading that growth.

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A Forecast That More Than Doubled Overnight

In November, AMD projected the server CPU market would expand at roughly 18% annually over a three-to-five year horizon. On Tuesday’s earnings call, Su revised that figure sharply upward, now expecting annual growth to exceed 35% and the overall market to surpass $120 billion by 2030. The revision reflects AMD’s structural advantage in CPUs, which handle inference tasks central to agentic AI applications — an area where rival Nvidia holds less dominance.

Su acknowledged that chip supply remains tight across the industry. She said AMD’s supply chain has been scaling deliberately and is positioned to meet customer demand despite the constrained environment.

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Wall Street Responds With a Sharp Re-Rating

Goldman Sachs wasted little time reacting. The bank lifted its price target on AMD from $240 to $450 and upgraded its rating from hold to buy, a significant swing that underscored how materially the earnings and revised guidance shifted the investment case.

AMD has long trailed Nvidia in the GPU market, but the rise of inference-heavy agentic workloads is reopening competitive ground in data centre silicon. Su’s doubling of the CPU market outlook signals that AMD sees this not as a cyclical bump but as a durable structural shift in how AI systems are built and run.

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