Not Intel. Not AMD. This Is the CPU Stock I’d Buy for the AI Agent Era.
Artificial intelligence (AI) has evolved from the chatbots that were popular during the early days of the technology’s rollout, when generative AI-based chatbots and assistants, such as ChatGPT, provided a single response to the user’s input.
AI has now become more capable. Chatbots can perform complex, multi-step tasks to achieve goals by collecting data, using models to break down the objective into steps, and employing external tools such as databases and search engines to provide results. These AI agents can operate autonomously or semi-autonomously to plan tasks and perform actions using software tools.
Not surprisingly, demand for agentic AI is expected to surge due to its benefits. According to a third-party estimate, the agentic AI market could clock a 40% compound annual growth rate (CAGR) over the next seven years, generating $206 billion in revenue in 2033. The agentic AI market’s rapid growth has created a surge in demand for server central processing units (CPUs), which explains why Advanced Micro Devices (NASDAQ: AMD) and Intel (NASDAQ: INTC) have been enjoying phenomenal growth in their server CPU business.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.