[Bank of America: AI Agents Drive Growth in Server CPU Market, Funds Shift Away from Individual Tech Stocks] BlockBeats News, July 23 — Bank of America Research stated in its latest report that with NVIDIA introducing the Vera CPU architecture and engaging in more direct competition with AMD on next-generation AI server platforms, the potential market size for server CPUs is expected to reach $170 billion by 2030, approximately four times the current level. Bank of America maintains its Buy rating and $350 price target for NVIDIA, asserting that the core of this round of competition has shifted from the performance of individual chips to how AI agent workloads should be measured: whether it's completing individual agent tasks faster or hosting more agents within the same rack. At the time of this assessment, AI stocks were undergoing rapid turnover. The Philadelphia Semiconductor Index had previously fallen more than 20% from its peak, entering a technical bear market, but chip stocks subsequently rebounded. On Tuesday, U.S. stocks rose, driven by Micron and NVIDIA, with the Nasdaq up 1.3%. By Wednesday, rising oil prices and higher U.S. Treasury yields suppressed risk appetite, causing the S&P 500 to dip 0.1% and the Nasdaq to retreat 0.6%, with volatility in AI stocks continuing to weigh on the broader market. Fund flows also showed similar divergence. Bank of America's client fund flow report revealed that clients have been net buyers of U.S. stocks for three consecutive weeks, but the buying was primarily driven by retail investors and ETFs. Last week, clients purchased $3.4 billion in stock ETFs while selling $3.1 billion in individual stocks; retail investors recorded their largest weekly net buying since May 2025, and institutional buying was positive for the third consecutive week, though entirely driven by ETFs. Hedge funds, on the other hand, sold stocks for the second consecutive week. At the sector level, tech stocks saw their first outflows in three weeks, while communication services experienced outflows for the third consecutive week. Funds shifted toward consumer discretionary, financials, and energy. Small-cap and micro-cap stocks saw significant buying, with the four-week rolling average inflows hitting a record high since Bank of America began tracking. Bank of America's long-term outlook for the server CPU market continues to support the demand narrative for NVIDIA, AMD, and the AI infrastructure chain. However, client fund flows indicate that current trading has shifted from 'buying all AI winners' to 'selecting companies that can demonstrate orders, profit margins, and cash flow.'