Agentic AI to widen chip spending beyond graphics processors to CPUs: Morgan Stanley

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.