Advanced Micro Devices, Inc (AMD) is riding a wave of optimism as the AI boom shifts gears. The company's CEO, Lisa Su, along with analysts from Bernstein and Moor Insights & Strategy, are all pointing to a massive surge in CPU demand driven by the rise of "AI agents" — autonomous programs that handle complex tasks. This isn't just a GPU story anymore; CPUs are becoming the unsung heroes of the AI revolution.

Lisa Su Says Agentic AI Is Driving a New CPU Demand Cycle

On Wednesday, Lisa Su told CNBC that AMD had a strong start to 2026 as enterprises move beyond AI experimentation and into full-scale deployment. These workloads, she explained, need serious computing power, and while GPUs handle the heavy lifting for AI acceleration, the rise of AI agents is creating a huge demand for general-purpose CPUs.

Su revealed that AMD previously expected the CPU total addressable market to grow about 18% to 20% annually by 2030. But now, the company believes growth could exceed 35%, pushing the CPU market above $120 billion by the end of the decade. The key driver? The changing mix of AI workloads has shifted the CPU-to-GPU ratio closer to 1-to-1, as enterprises deploy multiple AI agents that continuously process and manage tasks.

For Su, this acceleration validates AMD's long-term strategy of investing in both CPUs and GPUs. "The industry has moved beyond early experimentation," she said, emphasizing that large enterprises are now actively deploying AI workloads that require significant computing power.

Stacy Rasgon Sees Rising EPS Power and AI Share Gains for AMD

Bernstein analyst Stacy Rasgon also appeared on CNBC on Wednesday, and he was bullish on AMD's CPU story. Rasgon admitted he had been cautious about AMD's long-term CPU opportunity before, but the company's updated forecasts and execution have made the growth outlook "increasingly credible."

He now believes AMD's earnings power could approach roughly $20 per share by 2028 — two years earlier than the company's previous target of 2030. Rasgon argued that AMD doesn't need massive gains in GPU market share to generate meaningful upside. Even modest share gains in a rapidly expanding AI market could significantly boost revenue and earnings.

Rasgon also highlighted AMD's strategic position: it offers both CPUs and GPUs, unlike Intel Corp (Intel), which lacks a meaningful GPU business. While NVIDIA Corp (NVIDIA) also participates in both markets, Rasgon said AMD remains well-positioned to benefit from growing demand across the AI compute stack. He noted that AMD trades at a higher forward earnings multiple than NVIDIA, but the accelerating earnings trajectory could still support further upside.

Patrick Moorhead Highlights AMD Execution and Expanding AI Opportunity

Moor Insights & Strategy CEO Patrick Moorhead told CNBC on Thursday that investors reacted appropriately to AMD's results. The company significantly expanded its CPU market opportunity while also delivering strong execution. Moorhead emphasized that AMD effectively doubled its total addressable market forecast for CPUs and paired that outlook with strong operational performance across its business.

He also pointed to growing optimism around AMD's upcoming MI450 GPU platform. According to Moorhead, Lisa Su has consistently delivered on the company's roadmap and strategic commitments. He noted that AMD's latest data center CPU revenue growth came primarily from higher unit shipments rather than pricing increases, signaling that the company likely gained server CPU market share.

Moorhead added that AMD's product roadmap remains competitive, although the company still faces pressure from NVIDIA, Intel, and Arm-based alternatives in the broader AI infrastructure market.

AMD Price Action: Advanced Micro Devices shares were down 2.25% at $411.91 at the time of publication on Thursday. The stock is approaching its 52-week high of $430.60, according to market data.