AI Server Demand Heats Up Again Ahead of Intel and AMD Earnings

As companies approach earnings season, KeyBanc indicates that analog chipmakers are expected to deliver strong financial results, driven by the continuation of a positive economic cycle.

AI demand remains extremely robust, while traditional data center demand is also heating up due to increased agentic workloads and improved supply conditions.

"We expect analog chips to deliver strong performance, driven by the ongoing positive economic cycle, supported by improved order-to-shipment ratios, extended lead times, healthy industrial and data center demand, and broad-based price increases," said Wayne and his team.

Regarding Intel (INTC-US) and AMD (AMD-US), analysts note that strong growth in server CPU demand, coupled with improved supply conditions, is expected to drive Intel's server CPU shipments up 25% to 30% in 2026 and AMD's by 15% to 20%. Both companies are projected to see server CPU shipment growth exceed 50% in 2027.

Intel is scheduled to release its Q2 earnings on July 23, while AMD will report its results on August 4.

On MPWR (MPWR-US), Wayne and his team point out that product pricing, enterprise data center business, and the initial volume production of the Vera Rubin architecture (with 60% to 70% market share) will drive near-term operational performance.

For Intel, despite the ongoing deterioration in the smartphone market, early pull-in of smartphone application processors (APs) in China and a higher-than-expected market share of 50% (originally estimated at 20%) for the iPhone 18 modem chip could lead to better-than-expected financial guidance, surpassing market concerns.

Regarding Qorvo (QRVO-US), Skyworks (SWKS-US), and Cirrus Logic (CRUS-US), Wayne and his team state, "Apple's (AAPL-US) order cuts may pressure near-term outlooks, but market expectations have already priced in below-seasonal demand for these three companies."