Intel CEO Lip-Bu Tan Has Incredible News for AMD Stock Investors
The demand for Intel's server CPUs is exceeding supply by a big margin.
Overview
Intel (NASDAQ:INTC) is firmly in the artificial intelligence (AI) chip race, driven by improving demand for server central processing units (CPUs), which has been fueled by growth in agentic AI and inference workloads.
Inference and agentic AI are multi-step tasks, unlike chatbots that gained popularity in the first wave of AI deployment. Instead of simply answering a prompt, AI agents break down a query into multiple steps to perform tasks autonomously. This brings CPUs into focus, as they can manage multi-step tasks, call applications into action, and monitor the security of autonomous tasks performed by the agent.
Details
As a result, Intel rival Advanced Micro Devices (NASDAQ:AMD) expects the total addressable market (TAM) for server CPUs to increase at a compound annual growth rate of more than 50% through 2030. AMD expects this market to generate $220 billion in revenue in 2030. So, Intel CEO Lip-Bu Tan's remarks about the state of the server CPU market clearly suggest that better times lie ahead for these chipmakers.
Source
Originally published at www.fool.com.
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