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AMD Stock Surges on Citi "Buy" Call
19 Jun
Summary
- Citi upgraded AMD stock to "Buy" with a $575 price target.
- AMD is gaining ground in the GPU market, especially with Meta.
- AMD's AI GPU shipments to Meta begin in the second half of 2026.
Advanced Micro Devices (AMD) stock surged following a significant upgrade from Citi, with analyst Atif Malik elevating the rating to "Buy" and increasing the price target to $575. This positive outlook underscores AMD's expanding presence in the crucial graphics processing unit (GPU) market.
The company's GPU business is increasingly recognized for its potential, particularly through strategic partnerships. AMD is on track to secure a substantial share of GPU sales for Meta Platforms, a key development in the AI hardware space.
Strategic collaborations are further bolstering AMD's position. The company has an expanded partnership with Meta, set to deploy significant Instinct GPU capacity across multiple product generations. Shipments for custom AI GPUs designed for Meta's next-generation workloads are anticipated to begin in the second half of 2026.
Additionally, AMD's engagements with OpenAI are exceeding initial projections for 2027. The company's Helios platform, combining Instinct GPUs and EPYC CPUs, serves as the delivery mechanism for these deployments, with advanced GPU samples already provided to leading customers.
