"Citi introduced a new CPU total addressable market model that includes general purpose CPUs, AI head nodes, and agentic CPU applications. Under that framework, the firm now sees the CPU market growing 35% annually to $132 billion by 2030, driven by 185% annual agentic CPU growth."
"The agentic CPU concept matters because autonomous AI agents generate massive orchestration and inference workloads that lean heavily on CPUs, not just GPUs. CEO Lip-Bu Tan made the same case on Intel's last call, asserting that "the CPU now serves as the orchestration layer and critical control plane for the entire AI stack.""
"Intel posted Q1 FY2026 revenue of $13.58 billion, up 7% year over year, with non-GAAP EPS of $0.29. The Data Center and AI (DCAI) segment grew 22% to $5.05 billion, while Intel Foundry revenue rose 16% to $5.42 billion."
"Management's Q2 FY2026 guidance calls for revenue of $13.8 billion to $14.8 billion with non-GAAP gross margin near 39%. Strategic wins include Xeon 6 selection as host CPU for NVIDIA's ( NASDAQ:NVDA) DGX Rubin NVL8 systems and a multiyear Google collaboration."
Citi raised its Intel price target to $130 from $95 while keeping a Buy rating, citing a new total addressable market framework for AI-era CPU demand. The model includes general purpose CPUs, AI head nodes, and agentic CPU applications, projecting a CPU market growing 35% annually to $132 billion by 2030. Agentic CPU workloads are projected to grow 185% annually because autonomous AI agents create orchestration and inference workloads that rely heavily on CPUs. Intel’s CEO described the CPU as the orchestration layer and control plane for the AI stack. Intel reported Q1 FY2026 revenue of $13.58 billion, with Data Center and AI revenue up 22% and Intel Foundry revenue up 16%. Q2 FY2026 guidance targets $13.8 billion to $14.8 billion revenue and non-GAAP gross margin near 39%, supported by Xeon 6 selection for NVIDIA DGX Rubin NVL8 systems and a multiyear Google collaboration.
Read at 24/7 Wall St.
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