- Raymond James upgraded AMD to Strong Buy from Outperform, extending its AI Factory framework to the server CPU market and forecasting rapid expansion driven by agentic workloads.
- UBS downgraded SAP to Neutral from Buy, flagging slow progress on agentic AI and a likely deceleration in cloud backlog growth (CCB) in the second half.
- JPMorgan and BofA downgraded Intuit to Neutral following results that showed competitive pressures spreading beyond TurboTax into the company’s broader business.
- BofA reiterated Buy on ASML, calling it a top pick and arguing its recent underperformance is difficult to justify given its growth outlook.
- Northland upgraded Semtech to Outperform, arguing the chip firm is gaining share in a part of the AI stack that is now constraining performance.
Raymond James has upgraded AMD to Strong Buy, projecting a 44% CAGR in the server CPU market, potentially reaching $201 billion by 2030. This growth is driven by agentic AI workloads, which include orchestration and database tasks primarily executed on CPUs.
Analyst Simon Leopold emphasized that AMD's positioning offers the best earnings leverage and market share gains. He noted that demand for agentic AI scales with active agents and workflow duration, aligning with Nvidia's long-term framework of $200 billion and AMD's own $220 billion estimate under aggressive adoption scenarios.
However, Leopold cautioned that increased workload won't directly translate to shipments due to factors like software efficiency and custom silicon.
In contrast, UBS downgraded SAP to Neutral, citing slow progress in agentic AI and a potential slowdown in cloud backlog growth. Analysts led by Michael Briest noted that SAP has only delivered 17 AI agents out of a targeted 200 by year-end, raising concerns about customer adoption of DIY AI solutions instead.
SAP's price target was raised to €201 from €164, but analysts believe the company is lagging in monetizing its AI capabilities.
“Raymond James sees the server CPU market growing at a 44% five-year CAGR to $201 billion by 2030, with agentic CPUs alone reaching $85 billion. UBS cut SAP's price target to €201 from €164, while JPMorgan slashed Intuit's to $331 from $605.”
