Investing.com — The rise of agentic AI is fundamentally restructuring data center architecture, moving beyond simple GPU-centric training toward complex workload orchestration. According to UBS analyst Timothy Arcuri, this shift is expected to catalyze a significant expansion in the server CPU Total Addressable Market (TAM).<\/p>\n
The bank estimates the server CPU TAM could grow roughly fivefold by 2030, rising from a $30 billion baseline in 2025 to approximately $170 billion. This trajectory is supported by expert calls indicating that agentic deployments generally require a 3x to 5x increase in CPU cores per user compared to traditional workloads.<\/p>\n
While the expanding market serves as a “tide that lifts all boats,” the Arm Holdings ADR (NASDAQ:ARM) instruction set appears poised to capture a disproportionate segment of new growth. Arcuri notes that ARM’s unit share is expected to reach 40% to 45% by 2030, a sharp increase from the 15% share estimated for 2025.<\/p>\n
This transition is driven by hyperscalers prioritizing power efficiency and high-density scaling for agentic “head nodes.” Consequently, UBS has raised its price target for ARM from $175 to $245, reflecting an increased long-term EPS CAGR of 37%.<\/p>\n
Advanced Micro Devices Inc (NASDAQ:AMD) is expected to benefit significantly from its established strength in high core count and multithreading, which are critical for scaling parallel subagents. Arcuri suggests that while Intel Corporation (NASDAQ:INTC) aims to close the performance gap with its upcoming Coral Rapids, its most immediate upside may reside in the “spillover” effect on the PC market.<\/p>\n
Agentic AI tools are increasingly pushing workloads to run locally on end-user devices to utilize “free” compute capacity and reduce cloud latency. This trend is expected to catalyze a major PC upgrade cycle, providing a secondary growth engine for both x86 providers.<\/p>\n
The technical requirements of agentic inference are driving a “step-function” increase in the attach rate of CPUs to accelerators. Expert insights gathered by UBS suggest that while traditional training requires 8 to 12 cores per GPU, agentic systems may require 80 to 120 cores per GPU.<\/p>\n
This demand stems from the need for a “sandbox” environment for every individual subagent an AI spins off to complete a task. Arcuri observes that this complexity is forcing a shift from 1-to-4 CPU-per-GPU configurations toward 1-to-2 or even 1-to-1 ratios in the coming years.<\/p>\n
The financial implications of this shift include a meaningful acceleration in Central Processing Unit Average Selling Prices (ASPs). High-end AI CPUs, such as NVIDIA\u2019s 144-core Grace or AWS\u2019s 192-core Graviton 5, are expected to command prices ranging from $3,000 to $4,000 per unit.<\/p>\n","protected":false},"excerpt":{"rendered":"Investing.com — The rise of agentic AI is fundamentally restructuring data center architecture, moving beyond simple GPU-centric training…\n","protected":false},"author":2,"featured_media":45403,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[129],"tags":[34066,34065,2040,223],"class_list":{"0":"post-61863","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ubs","8":"tag-cpu-cores","9":"tag-server-cpu-tam","10":"tag-timothy-arcuri","11":"tag-ubs"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116535483871394670","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/61863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=61863"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/61863\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/45403"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=61863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=61863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=61863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}