Wolfe Research says AMD could be a major beneficiary of agentic AI spending, with server CPU market expanding through 2028.

Wolfe Research projects AMD server CPU revenue rising to $44 billion by 2028 from about $17 billion in 2026, driven by agentic AI systems (self-directing AI that coordinates tasks) requiring more processors to manage memory and fetch data.

The shift could lift the total addressable market for CPUs by about 30% through 2028, with Arm-based chips potentially capturing 50% to 75% of the future agentic AI CPU market.

Wolfe estimated AI-driven CPU demand could add roughly $7 a share in earnings power versus 2025, bringing AMD's total earnings power to $25 to $30 a share by 2028.