Key Takeaways
- Analysts at Wolfe Research predict agentic AI and orchestration processors will expand the CPU sector by approximately 30% before 2028 ends
- Advanced Micro Devices emerges as the primary beneficiary when accounting for company scale and current market valuation, with server processor revenues projected at $44 billion by 2028
- Processors built on ARM architecture anticipated to dominate 50–75% of the agentic AI processor segment
- Intel Corporation projected to surrender market position in both orchestration and agentic processor categories despite overall revenue expansion
- Nvidia Corporation anticipated to deliver more than 4 million processors during the current year, though processors constitute a minor portion of total operations
A recently released analysis from Wolfe Research indicates that emerging agentic artificial intelligence applications will catalyze approximately 30% expansion in the central processing unit marketplace extending through the end of 2028. According to the investment firm, contemporary AI systems require substantially greater CPU resources working in tandem with graphics processors to orchestrate operations, oversee memory allocation, and execute sophisticated computational tasks.
The analytical team additionally highlighted that constrained production capacity at Taiwan Semiconductor Manufacturing Company may ultimately determine competitive positioning more significantly than pure chip performance characteristics during the coming years.
The Case for AMD as Market Leader
Wolfe Research’s assessment positions Advanced Micro Devices as the company with the greatest potential gains when measured against its existing scale and equity valuation. Analysts forecast the chipmaker’s server processor revenues could surge to $44 billion before 2028 concludes, representing substantial growth from $17 billion anticipated in 2026.
Advanced Micro Devices, Inc., AMD
The research firm further calculates that CPU opportunities created by artificial intelligence could contribute approximately $7 in additional earnings per share beyond 2025 levels. Such growth would elevate AMD’s aggregate earning capacity to a range spanning $25 through $30 per share by the conclusion of 2028.
Analysts emphasize ARM-based processor architectures as fundamental to this expansion trajectory. Projections suggest ARM-designed CPUs will command between half and three-quarters of the agentic artificial intelligence processor marketplace, attributed to superior power efficiency metrics and enhanced multi-threading capabilities versus conventional x86 architecture designs.
Intel Sees Revenue Growth Amid Shrinking Market Position
Intel Corporation is projected to witness server processor revenues climbing to $41.5 billion by 2028’s end, advancing from $22.6 billion expected in 2026. Wolfe’s calculations suggest this trajectory could deliver roughly $1 in additional earnings per share compared with 2025 performance.
Nevertheless, the investment firm simultaneously predicts Intel will experience continued erosion of competitive position. Google’s transition toward its proprietary Axion processor for orchestration operations directly diminishes Intel’s standing.
The semiconductor giant confronts challenges across both conventional and agentic processor categories, even as the broader marketplace expands considerably.
Nvidia and Arm Positioned for Substantial Gains
Wolfe Research anticipates Nvidia Corporation will deliver in excess of 4 million processors throughout the present year. Approximately 1.3 million units will comprise Vera agentic processors, with the majority shipping during the final quarter. Agentic processor revenues are forecast to accelerate from $6.6 billion in 2026 to $24.6 billion in 2028.
Notwithstanding this expansion, Wolfe’s analysis emphasizes that processors will continue representing a considerably smaller business segment relative to Nvidia’s artificial intelligence accelerator division. The earnings per share contribution from processor sales is anticipated at merely $0.50 incremental beyond 2025 levels.
Arm Holdings stands to capture value through licensing revenue streams and direct chip sales. Wolfe’s financial model projects $1.5 billion in royalty income for 2027, escalating to $2.5 billion in 2028. The firm additionally forecasts $2 billion in ARM silicon revenues during 2028, propelling earnings power to approximately $4.50 per share by that timeframe. Analysts note that present ARM equity valuations already appear elevated.
The comprehensive CPU marketplace expansion is additionally expected to generate roughly 20% wafer production growth across a two-year horizon, although graphics processors and accelerated processing units remain the principal catalysts for demand at advanced manufacturing nodes.
