Citi Raises CPU Market Outlook Amid Semiconductor Rally
On 8 September 2026, Citi released an optimistic assessment of the global chip sector ahead of its 2026 Global TMT conference. The brokerage lifted its estimate for the total addressable market (TAM) for central‑processing units (CPUs) to $237 billion by 2030, up from $29 billion in 2025, which translates to a 52% compound annual growth rate. This projection exceeds the market‑size estimates disclosed by major players: AMD forecasts $100 billion, ARM Holdings $220 billion, and Nvidia $200 billion.
The upbeat outlook coincided with a 1.6% rise in the PHLX semiconductor index on Tuesday. Intel shares jumped 9.8%, Advanced Micro Devices (AMD) climbed 6.6%, and ARM Holdings’ U.S. shares added 4.7%. Citi highlighted that it is “more constructive on the innovation” in the server‑CPU space, identifying AMD as the key beneficiary of the CPU renaissance and Intel as a secondary beneficiary.
The broader semiconductor rally also lifted optical‑technology stocks. Coherent rose 8.8%, Lumentum surged 12.6%, and Applied Optoelectronics gained approximately 8%.
This article was generated with AI assistance and reviewed by an editor.