CPUs Power the Agent Era
The idea
I believe AI agents, with all their tool calls and multi-step tasks, will push CPU demand harder than chatbots ever did, making processors the next real driver of AI spending. So this basket sticks to the chipmakers themselves, split between the x86 server leaders and the Arm-based challengers building newer AI server designs. It is concentrated by design since these stocks tend to move together, so I keep a cash reserve on hand to add when prices pull back.
What will be bought
- AMD and Intel sell most of the server CPUs that AI agents run on today, so more agents means more of their chips. · Advanced Micro DevicesIts EPYC chips are the server processors most likely to handle extra work when AI agents run tool calls and multi-step tasks., Intel CorporationXeon chips still run a huge share of the world's servers, so if agents push CPU demand up, Intel sells a lot of those processors.47%
- Arm designs are taking a growing slice of server CPUs, including the chips cloud companies and Nvidia build for AI racks. · Arm HoldingsIt earns a royalty on the custom server chips that cloud companies and Nvidia build on its designs., QualcommIt is trying to turn its Arm chip know-how into server CPUs for the agent era, making it the earliest-stage bet in this take., NVIDIA CorporationIt sells Arm-based Grace CPUs bundled into its AI server systems, so more agent work means more of its own processors in data centers alongside its GPUs.40%
- Cash13%