WHAT YOU NEED TO KNOW
  • Citi raised its AMD price target to $800 from $575, suggesting another 25% advance could be ahead.
  • Citi expects the CPU market to expand from $29 billion in 2025 to $300 billion in 2030.
  • AMD reported record second quarter revenue of $11.5 billion, up 50% from the prior year.
  • AMD agreed to acquire World Labs for $8.2 billion, with closing expected by the end of 2026.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

AMD stock may have considerably more room to run after reaching record territory, according to Citi. Analyst Atif Malik raised his price target on the chipmaker to $800 from $575 on Tuesday, signaling confidence that another 25% advance could be ahead.

Shares gained 1% in premarket trading and appeared positioned to open at another record high. Citi’s increasingly bullish outlook centers on Meta Muse and the prospect of a dramatic expansion in demand for central processing units.

“Following the release of Meta Muse and our subsequent CPU TAM raise, we are raising estimates on AMD given our belief that AMD will be the primary beneficiary of the CPU renaissance and our belief that Meta is one of the largest customers of AMD's server business,” Malik said.

The analyst expects artificial intelligence agents to require substantially more computing power than traditional chatbots. That potential demand surge has led Citi to rethink the future scale of the CPU market and AMD’s opportunity within it.

MORE NEWS: Gold Sends an Urgent Warning as Debt Fears Ignite the Debasement Trade

“We update our CPU model post the launch of Muse, Meta's personal AI agent. Fundamentally, we view agentic AI as a potential orders-of-magnitude driver of compute demand relative to traditional chatbots,” Malik added.

“We believe the CPU TAM [total addressable market] expands from $29 billion in 2025 to $300 billion in 2030, or a 60% CAGR. We still expect AMD to be the key beneficiary of the CPU renaissance and Intel as a secondary beneficiary.”

The call adds to a series of bullish developments for AMD in recent months. Two weeks earlier, the company signed an agreement to acquire World Labs, a San Francisco based AI model laboratory focused on software for three dimensional environments.

AMD agreed to pay $8.2 billion for World Labs, with the transaction expected to close by the end of 2026. The laboratory was founded in 2024 and is led by Dr. Fei-Fei Li, an AI researcher known in technology circles as the “Godmother of AI.”

With the Federal Reserve expected to keep interest rates unchanged this month, do you think interest rates should remain where they are instead of being cut?

By completing the poll, you agree to receive emails from Gold Investors News, occasional offers from our partners and that you've read and agree to our privacy policy and legal statement.

Li previously served as chief scientist at Google Cloud. The planned purchase gives AMD another prominent AI asset as the company pushes deeper into hardware and software built around increasingly demanding computing workloads.

AMD’s latest financial results also strengthened the bullish case. The company exceeded Wall Street expectations across the board for the second quarter in early August, reporting record non-GAAP earnings per share of $1.66 compared with consensus estimates of $1.61.

Total revenue increased 50% from the prior year to a record $11.5 billion. That result surpassed analyst projections of approximately $11.34 billion and reflected particularly strong performance from the company’s Data Center segment.

Data Center revenue more than doubled from the prior year to $6.7 billion. AMD attributed that growth to robust demand for its EPYC server CPUs and Instinct AI accelerators, two product lines central to its expanding role in AI infrastructure.

Close

MORE NEWS: 5.3% Bond Yields Challenge Gold but Cannot Stop Fiat Currency Erosion, YieldMax’s Khouw Says

The company projected that server CPU revenue in the second half of 2026 would grow 80% from the prior year, followed by 70% growth in 2027. AMD also expects Data Center revenue to more than double in 2027, while AI graphics processing unit revenue is projected to grow well above 100%.

“The CPU renaissance is playing out,” Evercore ISI analyst Mark Lipacis said. That assessment mirrors Citi’s view that the rapid development of AI agents could revive and greatly expand the market for the processors required to support them.

AMD has also introduced its next generation AI chips, led by the Instinct MI450 Series GPUs and sixth generation EPYC Venice CPUs. Those products are intended to power the company’s Helios rack scale AI systems.

Helios combines GPUs, CPUs, networking and software into one integrated platform for training and operating large AI models. Together with the World Labs transaction, Meta Muse and AMD’s latest financial performance, the new systems give Citi multiple reasons to expect further gains from a stock already setting records.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.