The smart body frenzy triggers the explosion of CPU+GPU AMD (AMD.US) joining hands with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR to accelerate production expansion! Striving to become the "computing power base" of the AI era.

The CEO of the leading high-performance chip manufacturer in the United States, AMD (AMD.US), Lisa Su, stated on Friday that due to significantly stronger-than-expected demand squeezing the global data center CPU and GPU markets, AMD is significantly increasing production capacity in collaboration with partners in Taiwan, China. AMD is riding the wave of demand for CPU+GPU brought about by the AI inference and Agentic AI (AI intelligent agents), actively positioning itself as a supplier of computing power infrastructure for "AI data center CPU+GPU+high-performance network infrastructure+rack-level systems" and will further deepen its collaboration with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR on the cutting-edge processes and advanced packaging ecosystem. Following her visit to China, Su stated that she had met with AMD's largest customers in China and globally to ensure that their long-term partner, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), the "global chip manufacturing king," can support a significant increase in production capacity for data center central processing units (CPUs) and AI GPU computing clusters. AMD also announced a significant investment of "over 10 billion USD" in the AI ecosystem in Taiwan, focusing on deepening strategic partnerships and enhancing advanced AI chip manufacturing and server cluster assembly capacity. Su also stated that AMD is collaborating with partners such as Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR to accelerate expansion in response to the higher-than-expected demand for CPU+GPU brought about by AI inference and Agentic AI. In terms of AI data center engineering logic, Agentic AI does not rely solely on GPU training of large models but requires CPUs to handle task scheduling, data movement, network stacks, storage access, security isolation, multi-agent orchestration, and inference service management. AMD's current push for capacity expansion in Taiwan is not just about "producing more chips," but about ensuring that EPYC CPUs, Instinct GPUs, advanced packaging, substrates, assembly, and rack-scale systems supply chain are synchronized and scaled up. Against the backdrop of the surge in data center CPU demand, Wall Street financial giants are increasingly optimistic about the two x86 architecture CPU super giantsIntel Corporation (INTC.US) and AMD (AMD.US)as well as the owner of the ARM instruction set architecture, Arm Ltd. (ARM.US). The stock prices of these three chip giants have seen significant increases this year, with Intel Corporation's stock up by as much as 222% year-to-date. According to TipRanks compiled data from Wall Street analysts, the highest target price for AMD is $625, representing a potential upside of about 40%. AMD's stock has already seen a 110% increase this year, making it one of the "AI super bull stocks" in the global stock market. From 2nm Venice to billions of dollars in investments, AMD is aggressively seizing the high ground in AI computing infrastructure capacity Taiwan plays a crucial role in the global AI computing infrastructure supply chain for North American super tech giants like NVIDIA Corporation (NVDA.US) and Apple Inc. (AAPL.US), supported by the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is a core chip supplier for AMD, NVIDIA Corporation, Apple Inc., Broadcom Inc., Qualcomm, and other chip giants. Su stated, "Overall CPU demand is significantly higher than any of us predicted a year ago." "I would say CPU market supply is tight." She mentioned that AMD is rapidly increasing its capacity and expects significant increases in supply every quarter this year, with plans to provide significantly more supply in 2027 and beyond. Su stated that this strong demand growth is driven by AI inference and Agentic AI. As enterprises pivot on a large scale towards Agentic AIAI systems that perform autonomous functionsCPUs have become the central focus with even higher demand than GPUs, with computing power requirements expanding significantly beyond GPUs used for training large AI models. Su mentioned that China accounts for about 20% of AMD's revenue, emphasizing that China remains a very important market for the American chip design company. She stated, "To be honest, when you look at the size of this market and the scale of our product portfolio, we will continue to work very closely with our Chinese customers." She also stated that AMD will continue to work closely with Chinese customers while complying with U.S. export controls, which restrict the shipment of some high-end AI chips to the Chinese market. AMD announced on Thursday that it will invest over $10 billion in the AI field in Taiwan to deepen strategic partnerships and accelerate the expansion of its capacity to build and assemble advanced AI computing clusters. Su stated that this investment will focus on chip manufacturing, advanced packaging, substrates, and rack-level system manufacturing. She added, "Due to the fairly lengthy lead time for some of these investments, they have to make sure they have land, buildings, and manufacturing capacity to achieve these items." She mentioned that AMD is jointly investing with partners to ensure sufficient expansion capacity from 2026 onwards, including up to 2029. AMD's move is not simply about adding orders to Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR but about expanding strategic capacity by leveraging the 2nm process technology of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, linking packaging, substrates, ODM/servers, and rack-scale system ecosystems. This reflects the fact that the competition for AI computing power has evolved from single GPU/CPU devices to a full-chain competition for capacity involving "cutting-edge processes + Chiplet advanced packaging + packaging substrates + rack-scale AI systems." AMD also stated on Thursday that it has begun usingTSMC's 2nm process technology to mass produce its Venice CPU. According to AMD's official statement, the EPYC "Venice" CPU is the 6th generation EPYC data center CPU and the world's first 2nm process-level data center CPU, marking the first commercial-scale production of a 2nm-level HPC/data center CPU, indicating that data center CPUs at the 2nm level are moving towards large-scale commercial use. Su stated, "In fact, we have made two bets. The first bet is on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, which I believe has proven to be a great bet for us." She mentioned that AMD's second significant bet is that the increasingly complex silicon manufacturing technology will require chips to be broken down into smaller parts and integrated through advanced packaging technology, a method that is widely adopted across the entire semiconductor industry known as "Chiplet advanced packaging technology." Do the two x86 chip giants join forces to go to a wild bull market? In the eyes of Wall Street analysts, AMD is not simply replicating NVIDIA Corporation's GPU dominance but is entering the AI data center industry valuation logic around EPYC CPU, Instinct GPU, Helios/rack-scale platform, 2nm Venice, and advanced packaging, attempting to restructure its valuation logic in this AI data center industry chain in the era of AI inference and Agentic AI. Wall Street analysts are expanding the narrative of AI computing power infrastructure from "GPU dominance/single-core driving" to a full-stack computing power revaluation of "AI GPU/ASIC+CPU+HBM/DRAM/NAND storage chip+optical interconnection-based data center high-speed connection system synergy." Against the backdrop of the surge in data center CPU demand, Wall Street financial giants Citigroup this week significantly raised the 12-month target stock prices for the two x86 architecture CPU super giantsIntel Corporation (INTC.US) and AMD (AMD.US). In a recently released research report, this financial giant also significantly raised its expectations for the size of the data center CPU and overall CPU market. During the 54th annual Global Technology, Media, and Communications Conference held by JPMorgan, Intel Corporation CEO Pat Gelsinger stated that Intel 18A (a sub-2nm advanced chip manufacturing process) supports mass production of Panther Lake with a monthly yield increase of about 7%, surpassing Intel Corporation's internal expectations. Gelsinger also mentioned that as the focus of AI computing power shifts from training to inference, CPUs are becoming increasingly crucial and indispensable in the AI era. The proportion of CPU to GPU configurations is accelerating from 1:8 towards 1:1, or even reaching 4:1. Additionally, Intel Corporation is actively pursuing ASIC business to offer customized AI CPU or AI GPU chip solutions. The shift of AI from training to inference and Agentic AI will significantly increase the strategic importance of CPUs in AI data centers. GPUs are responsible for large-scale matrix calculations, but CPUs handle scheduling, I/O, memory management, task orchestration, security isolation, database access, network stacks, and multi-agent workflow execution. As AI applications transition from "single-inference" to "continuously running software labor," CPU demand is moving from traditional server refresh cycles to AI infrastructure expansion cycles. Citigroup's latest model also echoes this: it projects that the total potential market size for data center server CPUs [CPU TAM] will expand from $29.3 billion in 2025 to $131.5 billion in 2030, with a compound annual growth rate of approximately 35%. According to Wall Street analysts compiled in TipRanks, the average target price is approximately $460, with the highest target price for AMD reaching as high as $625, representing a potential upside of about 40%. AMD's stock has already seen a 110% increase this year, making it one of the "AI super bull stocks" in the global stock market. The highest target price of $625 comes from Baird analyst Tristan Gerra, who recently raised AMD's target price from $300 to $625 and maintained an "Outperform" rating, based on the unprecedented surge in CPU/GPU demand driven by Agentic AI and the revaluation of AMD's data center platform value. Analyst Tristan Gerra stated that AMD's opportunities in AI server CPUs, GPUs, and accelerated computing platforms are being revalued, especially in the face of the waves of AI inference, Agentic AI, EPYC data center CPUs, Instinct GPUs, and the expansion of the next generation of AI infrastructure. The market is beginning to view AMD as a key beneficiary in the AI computing power industry chain of "CPU+GPU+super platform solutions."