Citi has upgraded Advanced Micro Devices to a Buy rating from Neutral, raising its price target to $575 from $460 per share.
Analyst Atif Malik argued that AMD’s emergence as a legitimate second source in the GPU market is not yet reflected in the stock’s current valuation.
Malik noted that most investors still view AMD primarily as a CPU company, which he believes significantly understates the opportunity ahead.
According to Citi, the share price currently prices in roughly a 60% probability of AMD achieving more than $50 billion in GPU sales by 2028.
Citi believes AMD is “poised to win lion’s share” of GPU business at Meta, one of the most consequential customers in the artificial intelligence infrastructure buildout.
AMD’s custom MI450 chips are expected to offer Meta a lower total cost of ownership compared with merchant GPU products currently available on the market.
The upgraded outlook also draws attention to AMD’s previously announced six-gigawatt, four-year deal with Meta, which includes a 160 million share common stock warrant.
That arrangement underscores the depth of the commercial relationship between the two companies and positions AMD as a critical supplier in Meta’s AI expansion plans.
On the CPU side, Citi raised its 2030 total addressable market estimate to $136.7 billion, up from a prior forecast of $131.5 billion following announcements at Computex.
That revised figure represents a 36% compound annual growth rate from $29.3 billion in 2025, exceeding AMD’s own forecast of $120 billion for the same period.
The broader CPU market expansion adds another layer of upside to AMD’s growth story beyond what investors are currently pricing into the shares.
Malik summarized the firm’s position clearly, describing AMD as “a legit second source” in the GPU market with meaningful upside that remains underappreciated by the broader investor community.
