What is driving the shift from GPU to CPU in AI?

The AI market is moving from GPUs used to train large-language models toward CPUs that may be more useful for inference—the step where AI answers questions. Rakers forecasts GPU revenue will reach $63 billion（約10兆円） by 2028, while CPU revenue will grow 68% in 2026 and continue strong growth in 2027 and 2028.

Why did Intel stock rise more than AMD despite the AMD upgrade?

Although Rakers' note was specifically about AMD, investors appear more excited about what the CPU growth forecast means for Intel, a CPU-focused competitor. Intel rose 4.2% while AMD gained only 3.6%.

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Wells Fargo analyst lifts AMD chip outlook, boosting Intel stock

Yahoo Finance AI17h ago4 min read

Key takeaway

Wells Fargo analyst Aaron Rakers raised his AMD price target based on forecasted strong growth in CPU revenue as the AI market shifts from GPU training to CPU inference. Intel stock rallied 4.2% on the news, reflecting investor optimism that the chipmaker could benefit from this trend. However, Intel trades at a significantly higher valuation multiple than its competitors, raising questions about whether upside is already baked into the stock price.

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3 Key Points

What happened
Wells Fargo analyst Aaron Rakers raised his price target on AMD stock, citing potential growth in CPU revenue. AMD CPU revenue is forecast to grow 68% in 2026, followed by 28% growth in 2027, and 22% more in 2028. Intel stock jumped 4.2% on the news, outpacing AMD's 3.6% gain.
Why it matters
The semiconductor market is shifting from GPUs (used to train AI models) toward CPUs for inference (the step where AI produces answers). Rakers sees this CPU expansion as an opportunity for both AMD and Intel, who have lagged behind Nvidia in AI dominance. If correct, this shift could improve prospects for Intel, a CPU-focused chipmaker.
What to watch
Valuation risk remains steep—Intel shares trade at more than 900× earnings, compared with AMD at 180× and Nvidia at 30×, suggesting Intel's CPU success may already be priced in.

FAQ

What is driving the shift from GPU to CPU in AI?: The AI market is moving from GPUs used to train large-language models toward CPUs that may be more useful for inference—the step where AI answers questions. Rakers forecasts GPU revenue will reach $63 billion（約10兆円） by 2028, while CPU revenue will grow 68% in 2026 and continue strong growth in 2027 and 2028.
Why did Intel stock rise more than AMD despite the AMD upgrade?: Although Rakers' note was specifically about AMD, investors appear more excited about what the CPU growth forecast means for Intel, a CPU-focused competitor. Intel rose 4.2% while AMD gained only 3.6%.

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