Citi’s Atif Malik has raised AMD’s inventory value goal from $575 to $800. Malik believes the launch of Meta Muse, Meta’s private AI agent, may enhance AMD’s chip gross sales. The analyst states, “Following the discharge of Meta Muse and our subsequent CPU TAM elevate, we’re elevating estimates on AMD given our perception that AMD would be the main beneficiary of the CPU renaissance and our perception that Meta is likely one of the largest clients of AMD’s server enterprise.“
Citi believes AMD will likely be a key participant within the age of agentic AI. Unlike generative AI that depends on GPU (Graphics Processing Unit) energy, agentic AI relies upon extra on CPU (Central Processing Unit) energy.
According to 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 Growth Rate). 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 firm’s income has repeatedly beat Wall Street expectations. AMD registered a income surged of practically 50% yr over yr to $11.5 billion. Analyst projections, in the meantime, had been at roughly $11.34 billion. The development is more likely to proceed given the rising demand for AI chips and information facilities.
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AMD additionally just lately introduced that it’ll purchase World Labs, a number one AI mannequin lab, for $8.2 billion. The acquisition could additional strengthened Wall Street expectations for AMD’s inventory worth. The inventory just lately hit a brand new all-time excessive of $658.52 on October fifth, 2026. The firm’s market cap additionally breached the $1 trillion mark in late September, turning into one of many few firms on the planet to take action.
