Key HighlightsBofA securities upgraded its 2030 server CPU market projection to exceed $210 billion from a previous $170 billion estimateProjected compound annual growth rate increased to 36% from 30%, fueled by AI agent computing requirementsAMD identified as preferred CPU investment due to combined leadership in processing frequency and core densityNvidia maintains status as BofA’s premier semiconductor investment choiceOverall data center infrastructure market anticipated to hit $2.2 trillion by decade’s endBank of America securities has upgraded its projections for the server central processing unit sector, pointing to the emergence of AI agents as a primary catalyst for increased CPU demand within data center infrastructure.In a research note, analyst Vivek Arya revised the firm’s 2030 server CPU total addressable market projection upward to surpass $210 billion. This marks a substantial increase from the previous estimate of approximately $170 billion.According to the investment bank, this updated forecast indicates nearly quintupled growth from the estimated $35 billion market size anticipated for 2025. The expected compound annual growth rate has similarly been adjusted upward from 30% to 36%.This forecast adjustment comes on the heels of second-quarter financial results and what BofA analysts characterized as robust demand patterns for AI computing power and memory components.The Growing Importance of Central ProcessorsAt the heart of Bank of America’s revised outlook lies a fundamental transformation in AI infrastructure architecture. Throughout the AI model training phase, data centers typically operated with a CPU-to-GPU deployment ratio of approximately 1:4. The bank now anticipates this ratio will shift toward 1:1 as agentic AI systems proliferate.The rationale centers on CPUs evolving into the “orchestration control plane” for AI agents, effectively managing and directing workloads rather than merely providing support functions.BofA emphasizes this represents a complementary dynamic rather than displacement. The firm characterizes CPUs as “additive to overall system TAM,” indicating both processor categories will experience parallel expansion.The investment bank references near-peak GPU rental rates and memory spot pricing as indicators of widespread compute capacity constraints that presumably affect CPU availability as well.BofA Designates AMD and Nvidia as Premier Investment OpportunitiesAMD received the firm’s designation as top CPU equity pick. Bank of America highlighted the chipmaker’s “dual leadership” position in both clock speed performance and core density across cloud infrastructure and enterprise computing markets.Advanced Micro Devices, Inc., AMDNvidia maintained its position as the firm’s premier semiconductor stock selection overall, with analysts continuing to view AI infrastructure as a substantial and sustained investment category.Bank of America additionally highlighted Intel as possessing noteworthy foundry potential worth monitoring. Arm was characterized as the industry’s most aggressive market share capture story.The firm currently projects CPUs will represent approximately 10% of the total data center systems market by 2030, an increase from roughly 7% during the model training era.The overall data center infrastructure market is forecast to reach $2.2 trillion by 2030, providing perspective on the magnitude of the CPU market opportunity ahead.The post Bank of America Elevates AI Chip Forecast, Selects AMD (AMD) and Nvidia (NVDA) as Leading Choices appeared first on Blockonomi.