Citi Predicts AMD AI GPU Sales Up 137% by 2027, Challenging Nvidia
NVDA•NVDA•NVDA•NVDA•Citi raised AMD’s price target to $575 and predicts AI GPU revenue of $33 billion in 2027 and $50.8 billion in 2028 based on a six-gigawatt Meta deal. Modest GPU share gains by AMD could erode Nvidia’s dominance as large cloud and enterprise customers seek additional AI accelerator suppliers.
Citi upgraded AMD to Buy and raised its price target to $575, citing confidence in AMD’s GPU roadmap. It forecasts AI GPU sales of $33 billion in 2027 and $50.8 billion in 2028 driven by a six-gigawatt supply deal with Meta. The analysis implies a growing probability that AMD could exceed $50 billion in GPU revenue by 2028.
Even modest GPU share gains by AMD could chip away at Nvidia’s monopoly in AI accelerators as large cloud and enterprise customers diversify sources. Capacity constraints at Nvidia have prompted buyers to seek alternative suppliers, increasing competitive pressure. Nvidia may need to adjust pricing or accelerate new product launches to defend its market position.
