Central processing units, or CPUs, are in high demand as businesses seek to expand their AI capabilities, according to Intel’s most recent earnings report, which caused its stock to soar. Investors seized shares of another significant chipmaker as a result of the numbers: sophisticated micro devices.
Wall Street analysts were taken aback by Intel’s CPU performance, which they fear could affect other major CPU manufacturers. As a result, AMD shares surged more than 12% on Friday.
In a Friday note, D.A. Davidson analyst Gil Luria stated, “We assumed CPUs were the next big bottleneck, but Intel’s results indicate that is already translating to very significant upside.” “As agentic workloads shift compute needs beyond graphics processing units made by companies like Nvidia, the CPU is reinserting itself as an indispensable foundation of the AI era, and the once sleepy CPU market has taken off.”
Luria increased his 2026 revenue and gross profit margins and upgraded AMD to purchase from neutral. Additionally, he raised the stock’s price target to $375, suggesting a 22% increase from Thursday’s close.
Source (CNBC)
