For months, one of Wall Street’s most closely watched chip analysts held a skeptical line on AMD while the stock rode the broader AI rally.
On June 12, that changed
Citi analyst Atif Malik upgraded AMD to Buy from Neutral and raised his price target to $575 from $460, and shares jumped 4.73% the same day, according to Stocktwits. The new target implies more than 17% upside from Thursday’s close. Citi’s reasoning, in the bank’s own words, was “increased conviction in AMD’s GPU business and server CPU tailwinds.” In practice, that means two things changed: Malik now believes AMD’s graphics chip business is worth far more than the market is pricing in, and he raised his long-term forecast for the entire CPU market on top of that.
The GPU shift is the bigger of the two, and it is built around one customer in particular. The AMD number Citi thinks the market has wrong Malik’s case rests on a specific gap between what AMD’s stock implies and what Citi thinks will actually happen. According to Investing.com, Citi estimates AMD’s current share price is pricing in only a 60% probability that the company surpasses $50 billion in GPU revenue by 2028.