Morgan Stanley sees agentic AI widening chip spending beyond graphics processors to CPUs


FILE PHOTO: Morgan Stanley logo appears in this illustration taken December 1, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

April 20 (Reuters) - Morgan Stanley ⁠said increasingly autonomous artificial intelligence could boost demand ⁠for central processing units (CPUs), reshape data center buildout ‌and widen investment beyond the graphic chips that have dominated the AI boom so far.

"As AI transitions from generation to autonomous action, the computing ​bottleneck is shifting towards CPU and ⁠memory, driving a step-change ⁠in general-purpose compute intensity," Morgan Stanley said in a note ⁠on ‌Sunday, adding that demand for graphic processing units (GPUs) remains strong.

• Morgan Stanley estimates agentic AI could ⁠add $32.5–60 billion to a data-centre CPU market already ​exceeding $100 billion by ‌2030.

• Agentic AI refers to systems that can plan ⁠tasks and ​take actions on their own, rather than simply responding to prompts.

• Morgan Stanley said the next wave of agentic AI ⁠will be driven more by coordination than ​just raw computing power.

• CPUs are increasingly acting as the control layer for AI systems that manage multistep tasks.

• Memory ⁠demand is set to rise sharply, widening AI spending beyond GPUs to chipmakers, memory suppliers and manufacturing.

• Companies in supply-constrained parts of the ecosystem could gain more pricing power, ​the brokerage added.

• Morgan Stanley sees ⁠the following companies as potential beneficiaries - Nvidia, AMD, Intel and ​Arm in CPUs and accelerators; Micron, ‌Samsung and SK hynix in ​memory; TSMC and ASML across chipmaking and equipment.

(Reporting by Rashika Singh in Bengaluru; Editing by Eileen Soreng)

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