Citi Sees AMD GPUs Winning Meta’s Six-Gigawatt Deal, Targets $575
META•Citi upgraded AMD to Buy with a $575 target after forecasting its custom MI450 GPUs will dominate Meta’s six-gigawatt, four-year contract, including a 160 million-share warrant and a first 1 GW ramp in H2 2026. It projects each gigawatt at roughly $15 billion revenue and AI sales rising to $33 billion in 2027 (+137% YoY) and $50.8 billion in 2028 (+54%).
1. Citi Upgrade and Price Target
Citi upgraded AMD from Neutral to Buy and raised its price target to $575, arguing that its GPU business potential is underappreciated given its emergence as a second source alongside Nvidia.
2. Meta GPU Deal Details
AMD secured a six-gigawatt, four-year custom GPU contract with Meta, including a 160 million-share common stock warrant and a first one-gigawatt tranche scheduled to ramp in the second half of 2026.
3. AI Sales Forecasts and Valuation
Citi estimates each gigawatt equates to about $15 billion in revenue, forecasting AMD AI sales of $33 billion in 2027 (up 137% YoY) and $50.8 billion in 2028 (up 54%), and values the GPU segment at $281 per share versus $204 for CPUs.
