Key Points
Meta Platforms’ personal Muse AI agent has become the most-downloaded app on the Apple App Store shortly after its launch earlier this month. Grand View Research forecasts that the enterprise AI agent market will grow at a compounded annual growth rate of over 48%, reaching $83.4 billion by 2033.
The increasing demand for agentic AI is expected to boost the need for data center server CPUs. Advanced Micro Devices (NASDAQ: AMD) and Arm Holdings (NASDAQ: ARM) are notable players in this sector. AMD is projected to capture 50% of a data center CPU market projected to hit $220 billion, thanks to its purpose-built CPUs for AI. In comparison, Arm plans to enter the server CPU market and aims for a 15% share in a potential $100 billion market by 2031.
While AMD is highlighted as a strong buy due to significant revenue deals and market positioning, Arm Holdings is viewed as a sell due to its high valuation and challenges in the smartphone market, despite its ambitious growth projections.
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