Citi’s Atif Malik has raised AMD’s inventory worth goal from $575 to $800. Malik believes the launch of Meta Muse, Meta’s private AI agent, might enhance AMD’s chip gross sales. The analyst states, “Following the discharge of Meta Muse and our subsequent CPU TAM increase, we’re elevating estimates on AMD given our perception that AMD would be the major beneficiary of the CPU renaissance and our perception that Meta is without doubt one of the largest prospects of AMD’s server enterprise.“
Citi believes AMD will likely be a key participant within the age of agentic AI. In contrast to generative AI that depends on GPU (Graphics Processing Unit) energy, agentic AI relies upon extra on CPU (Central Processing Unit) energy.
In accordance with Malik, CPU TAM [total addressable market] for AMD will surge from $29 billion in 2025 to $300 billion in 2030. The figures represents a 60% CAGR (Compound Annual Progress Fee). Malik says, “We nonetheless anticipate AMD to be the important thing beneficiary of the CPU renaissance and Intel as a secondary beneficiary.“
AMD has been one of many best-performing shares amid an AI increase. The corporate’s income has repeatedly beat Wall Road expectations. AMD registered a income surged of practically 50% yr over yr to $11.5 billion. Analyst projections, in the meantime, have been at roughly $11.34 billion. The pattern is prone to proceed given the rising demand for AI chips and knowledge facilities.
AMD additionally lately introduced that it’ll purchase World Labs, a number one AI mannequin lab, for $8.2 billion. The acquisition could additional strengthened Wall Road expectations for AMD’s inventory worth. The inventory lately hit a brand new all-time excessive of $658.52 on October fifth, 2026. The corporate’s market cap additionally breached the $1 trillion mark in late September, turning into one of many few corporations on the earth to take action.
