Bank of America said in a new research note that the addressable market for server CPUs could reach $170 billion by 2030, about four times its current size, as Nvidia rolls out its Vera CPU architecture and competes more directly with AMD in next-generation AI server platforms.
The bank maintained its Buy rating on Nvidia and kept its $350 price target. In BofA’s view, the center of competition is no longer just about the performance of a single chip. The debate is shifting to how AI agent workloads should be evaluated: whether hardware should be designed to finish an individual agent task faster, or to run more agents within the same rack.
AI stocks are in a fast rotation phase
The note was published as AI-linked stocks were going through a period of rapid turnover. The Philadelphia Semiconductor Index had previously fallen more than 20% from its peak, putting it in technical bear market territory, though chip stocks later rebounded.
On Tuesday, U.S. equities moved higher with support from Micron and Nvidia, pushing the Nasdaq up 1.3%. By Wednesday, rising oil prices and higher U.S. Treasury yields weighed on risk appetite. The S&P 500 edged down 0.1%, while the Nasdaq fell 0.6%, with continued volatility in AI shares dragging on the broader market.
Clients are still buying U.S. stocks, but through ETFs
BofA’s client flow report showed clients were net buyers of U.S. equities for a third straight week, but most of the buying came from retail investors and ETFs.
Last week, clients bought $3.4 billion of equity ETFs while selling $3.1 billion of single stocks. Retail investors logged their biggest weekly buying since May 2025. Institutional clients were net buyers for a third consecutive week as well, but that demand was entirely driven by ETFs. Hedge funds, by contrast, sold stocks for a second straight week.
Technology posts its first outflow in three weeks
At the sector level, technology recorded its first outflow in three weeks, while communication services posted a third consecutive week of outflows. Money rotated into consumer discretionary, financials, and energy.
Small-cap and micro-cap stocks attracted notable buying. Their four-week rolling average inflow reached the highest level since BofA began tracking the data.
BofA’s longer-term view on the server CPU market continues to support the demand narrative around Nvidia, AMD, and the broader AI infrastructure supply chain. At the same time, the bank’s client flow data suggests trading is moving away from a simple “buy all AI winners” approach and toward screening for companies that can show orders, margins, and cash flow.