Shares of Intel and Advanced Micro Devices rallied after Intel’s latest earnings report revealed stronger-than-expected demand for central processing units (CPUs), driven by the expansion of artificial intelligence infrastructure. AMD shares jumped more than 12% Friday, as investors bet the trend would benefit multiple chipmakers.
Intel’s results showed that CPUs are becoming a renewed focal point in AI computing, challenging the narrative that graphics processing units dominate the space. Analysts said the rise of agentic AI workloads is increasing demand for general-purpose processing alongside accelerators from companies like Nvidia. Intel also issued stronger guidance, projecting double-digit growth in server CPU shipments in 2026.
The upbeat outlook prompted analysts to revise expectations for the broader semiconductor sector. D.A. Davidson upgraded AMD to a buy rating, raising its price target and forecasting improved revenue and margins. Citi also upgraded Intel, citing accelerating demand, while other firms highlighted increasing participation across AI infrastructure providers.
The renewed focus on CPUs reflects shifting requirements in AI systems, where diverse workloads demand a combination of processing architectures. While GPUs remain central for model training, CPUs are increasingly seen as essential for orchestration, data handling, and inference tasks.
The rally signals a broader revaluation of chipmakers tied to AI infrastructure, as investors reassess which components will benefit most from the next phase of AI deployment.
