Investing.com -- The rose 1.6% on Tuesday, led by gains in and following a bullish report from Citi.
Intel shares jumped 9.8%, while AMD climbed 6.6%. ’ U.S. shares added 4.7%.
Citi released its optimistic assessment of the chip sector ahead of its 2026 Global TMT conference, which began Tuesday. The brokerage raised its estimate for the total addressable market for CPUs to $237 billion by 2030, representing a 52% compound annual growth rate from $29 billion in 2025.
The forecast exceeds market size estimates of $100 billion, $220 billion and $200 billion from AMD, ARM Holdings and Nvidia, respectively.
Citi said it is "more constructive on the innovation" in the server CPU space and expects "AMD to be the key beneficiary of the CPU renaissance and Intel as a secondary beneficiary."
The broader semiconductor rally extended to optical technology stocks. rose 8.8%, while surged 12.6% and gained approximately 8%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.