KeyBanc now projects general purpose server unit growth to increase to 30% from 18.5% previously, driven by improved x86 supply and rising ARM demand for agentic AI workloads. AMD secured incremental N4 wafers from TSMC due to MediaTek order cuts, enabling 15-20% server CPU unit growth this year, while NVIDIA boosted Vera CPU capacity by 1.2M-1.5M units to 2.5M-3.0M for agentic AI. Both AMD and Intel aim for over 50% server CPU unit growth in 2027, expanding capacity to meet demand.
Increased server CPU supply from AMD and Intel, alongside NVIDIA's Vera capacity expansion, directly addresses rising agentic AI compute demand.