Advanced Micro Devices, Inc (NASDAQ:AMD) strengthened investor confidence in the AI infrastructure boom after CEO Lisa Su, Bernstein analyst Stacy Rasgon, and Moor Insights & Strategy CEO Patrick Moorhead highlighted surging CPU demand, expanding AI workloads, and growing market opportunities across data centers.

Lisa Su Says Agentic AI Is Driving A New CPU Demand Cycle

AMD Chair and CEO Lisa Su told CNBC on Wednesday that the company delivered a strong start to 2026 as enterprises accelerated AI adoption and increased demand for compute infrastructure.

Su explained that the industry has moved beyond early experimentation, with large enterprises now actively deploying AI workloads that require significant computing power.

While GPUs remain critical for AI acceleration, she said the rise of AI agents has sharply increased demand for CPUs because those workloads require more general-purpose processing.

According to Su, AMD previously expected the CPU total addressable market to grow roughly 18%-20% annually by 2030.

Still, the company now believes that the growth rate could exceed 35%, pushing the CPU market above $120 billion by the end of the decade.

She said the changing AI workload mix has shifted the CPU-to-GPU ratio closer to 1-to-1 as enterprises deploy multiple AI agents that continuously process and manage tasks.

Su also described the acceleration in AI adoption as validation of AMD's long-term strategy around CPUs, GPUs, and AI infrastructure.

Stacy Rasgon Sees Rising EPS Power And AI Share Gains For AMD

Bernstein analyst Stacy Rasgon told CNBC on Wednesday that AMD's latest results strengthened confidence in the sustainability of the company's CPU growth story.

Rasgon acknowledged that he had previously been cautious about AMD's long-term CPU opportunity, but said the company's updated forecasts and execution now make the growth outlook increasingly credible.

He said AMD's earnings power could approach roughly $20 per share by 2028, a level the company had previously targeted for 2030 during its analyst day presentation.

Rasgon argued that AMD does not need massive gains in GPU market share to generate meaningful upside, as even modest share gains in a rapidly expanding AI market could significantly boost revenue and earnings.

He also said AMD occupies a strong strategic position because it offers both CPUs and GPUs, unlike Intel Corp (NASDAQ:INTC), which lacks a meaningful GPU business.

Rasgon noted that NVIDIA Corp (NASDAQ:NVDA) also participates in both markets, but said AMD remains well-positioned to benefit from growing demand across the AI compute stack.

While Rasgon pointed out that AMD trades at a higher forward earnings multiple than NVIDIA, he added that the company's accelerating earnings trajectory could still support further upside.

Patrick Moorhead Highlights AMD Execution And Expanding AI Opportunity

Moor Insights & Strategy CEO and chief analyst Patrick Moorhead told CNBC on Thursday that investors reacted appropriately to AMD's results because the company significantly expanded its CPU market opportunity while also delivering strong execution.

Moorhead emphasized that AMD effectively doubled its total addressable market forecast for CPUs and paired that outlook with strong operational performance across its business.

He also pointed to growing optimism around AMD's upcoming MI450 GPU platform.

According to Moorhead, Lisa Su has consistently delivered on the company's roadmap and strategic commitments.

He noted that AMD's latest data center CPU revenue growth came primarily from higher unit shipments rather than pricing increases, signaling that the company likely gained server CPU market share.

Moorhead added that AMD's product roadmap remains competitive, although the company still faces pressure from NVIDIA, Intel, and Arm-based alternatives in the broader AI infrastructure market.

AMD Price Action: Advanced Micro Devices shares were down 2.25% at $411.91 at the time of publication on Thursday. The stock is approaching its 52-week high of $430.60, according to Benzinga Pro data.

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