Citi Cuts AMD Price Target to $248, Raises 2026 EPS to $6.38
Citigroup kept AMD at a Neutral rating but cut its price target to $248 from $260 by valuing CPU and GPU separately. The firm raised AMD’s 2026 EPS estimate to $6.38 and noted CPU price hikes from March plus a server share increase to 41.3% in Q4 2025.
1. Analyst Rating and Valuation Adjustments
Citi maintained a Neutral rating on AMD and cut its price target to $248 from $260, applying a separate valuation to its CPU and GPU segments.
2. 2026 EPS Revision
The analysts upped the 2026 EPS forecast to $6.38 from $6.34, citing stronger CPU demand driven by agentic AI applications that could boost revenue.
3. CPU Price Increase Plans
AMD plans to raise CPU prices starting in March and April across its product lines to capitalize on high demand and strengthen margins.
4. Server Market Share Gains
AMD’s server CPU revenue share climbed to 41.3% in Q4 2025 from 39% the prior quarter, underscoring continued market share gains against competitors despite potential subseasonal trends in 2H26.