Advanced Micro Devices said it expects second-quarter revenue to top Wall Street estimates, driven largely by stronger-than-expected demand for its data-center processors. The announcement prompted a 17% jump in AMD shares in premarket trading on Wednesday.
Other CPU-related stocks also moved higher ahead of corporate results: Intel rose 6.2% in premarket trading and ARM climbed 11.3% as investors awaited ARM’s earnings report scheduled after the market close on Wednesday.
AMD updated its long-term view for the server CPU opportunity, saying it now expects the server CPU addressable market to grow at more than 35% per year and to exceed $120 billion by 2030. That projection marks a substantial increase from the roughly 18% annual growth rate AMD forecast in November.
Wall Street analysts responded quickly to AMD’s outlook. Goldman Sachs wrote that it expects AMD to be an outsized beneficiary of enterprise agentic AI adoption, citing the staying power of x86 architectures as agents interact with enterprises’ existing x86 infrastructure.
Jefferies noted that the structural uplift associated with agentic AI should be largely incremental to the total addressable market for GPUs, and flagged that AMD is scheduled to provide additional detail at its AI Day in July.
Bank of America analysts estimated that AMD could secure roughly 50% market share, with the remainder divided between Intel and a range of ARM-based variants. BofA’s team observed that while a larger CPU total addressable market should benefit all CPU vendors, they expect AMD to maintain or expand share on the basis of its broad product portfolio, increasing enterprise focus, sustained cloud leadership and consistent roadmap execution.
BofA also suggested AMD could announce additional large GPU customers for 2027 and beyond, noting that each gigawatt of capacity represents $15 billion to $20 billion in incremental opportunity.
On regional markets, Samsung’s market capitalization reached $1 trillion, placing the company alongside TSMC as one of the only Asian firms to hit that milestone in the context of investors reallocating capital toward hardware companies positioned to benefit from AI demand.
The market moves illustrate how a single company’s guidance can prompt broad reassessments of addressable markets and competitive positioning across the semiconductor and cloud infrastructure ecosystem. AMD’s upgraded server CPU outlook and the commentary from major banks have altered investor expectations for CPU and GPU demand as enterprises plan for agentic AI workloads.
What this means for markets:
- Semiconductor equities saw immediate gains on AMD’s guidance and analysts’ notes.
- Cloud and data-center related hardware demand assumptions were revised upwards by analysts.
- Asian chipmakers drew investor attention as capital shifts toward hardware beneficiaries of AI.