Advanced Micro Devices, Inc. (NASDAQ: AMD) received a significant Wall Street vote of confidence after Citi upgraded the chipmaker’s shares from Neutral to Buy on June 12.
Alongside the upgrade, Citi raised its price target on AMD to $575, a substantial jump from its prior target of $460.
Citi analyst Atif Malik argued that the upside from AMD’s graphics processing unit business is not yet fully reflected in the current stock price.
In a research note, Malik described AMD as “emerging as a legit second source” in the GPU market, signaling growing competitive relevance against established players.
Citi also identified Meta as a key growth avenue, stating that AMD is well-positioned to capture the “lion’s share” of opportunities at the social media and technology giant.
A central part of Citi’s bullish case rests on the belief that investors still view AMD primarily as a central processing unit company, which the firm sees as creating additional upside potential.
The Citi upgrade followed closely on the heels of a separate price target increase from Bank of America, which on June 11 raised its recommendation on AMD to $560 from $500 while reiterating a Buy rating.
BofA’s revised outlook was based on its analysis and discussions at the BofA Global Tech Conference, through which it increased its calendar year 2030 server CPU total addressable market forecast to more than $170 billion, up from a prior estimate of $125 billion.
That revised forecast implies nearly fivefold growth and a 37% compound annual growth rate between 2025 and 2030, reflecting the broadening scale of demand for advanced computing infrastructure.
BofA views the emergence of agentic AI as a major demand driver that expands the CPU market opportunity and benefits both x86 incumbents and ARM challengers across the semiconductor landscape.
AMD is a global semiconductor company focused on high-performance computing and artificial intelligence, operating through its Data Center, Client and Gaming, and Embedded business segments.
The dual analyst upgrades and rising price targets reflect growing institutional conviction that AMD’s GPU ambitions are maturing into a commercially significant and financially material opportunity.
