Huatai Securities: Optimistic about Agentic AI development driving CPUs into a new era of high-speed growth.

Huatai Securities research report stated, according to Reuters, in the recent period, there has been a tight supply in the server CPU market, with delivery cycles for some models potentially extending up to 6 months. Huatai Securities observed that starting from 2025, with the rapid development of AI, there is a growing demand for cloud computing, and the AI training and inference processes also have a significant impact on general computing power. Additionally, the slow pace of Intel's capacity expansion has led to a short-term imbalance between supply and demand. In the longer term, with the rapid development of Agentic AI, AI workloads are shifting from being compute-intensive to being system-intensive, where tasks such as task scheduling, tool/API/script calling, sandbox/virtual environment operation, data parsing, compilation/testing, etc. can all run on CPUs. The importance of CPUs in AI systems is clearly increasing. We are optimistic about the development of Agentic AI driving a high-speed growth in CPUs, and also place a strong focus on the acceleration of domestic CSP's purchase of CPUs as a substitute for overseas CPU shortages.