Citi upgraded Advanced Micro Devices to Buy, raising its price target to $575 from $460 and arguing that AMD’s role as a secondary GPU supplier alongside Nvidia remains underappreciated. The firm forecasts AMD AI sales of $33 billion in 2027 and $50.8 billion in 2028, underpinned by a six-gigawatt GPU deal with Meta that could generate roughly $90 billion in revenue over four years.
Citi moved Advanced Micro Devices from Neutral to Buy, boosting its price target from $460 to $575. The upgrade reflects the belief that investors underweight AMD’s emerging GPU business relative to its established CPU franchise.
Citi sees AMD becoming a key GPU supplier for Meta under a four-year, six-gigawatt deal that includes a 160 million share warrant. Each gigawatt is estimated to translate into approximately $15 billion in revenue, supporting forecasts of $33 billion in AI sales by 2027 and $50.8 billion by 2028.
On the CPU side, Citi raised its 2030 total addressable market estimate to $136.7 billion, implying a 36% CAGR from $29.3 billion in 2025. The $575 target is derived from a sum-of-parts model valuing the GPU segment at $281 per share and CPUs at $204 per share.
Marketwatch
