Citi’s Atif Malik has raised AMD’s inventory value goal from $575 to $800. Malik believes the release of Meta Muse, Meta’s non-public AI agent, may just spice up AMD’s chip gross sales. The analyst states, “Following the discharge of Meta Muse and our next CPU TAM lift, we’re elevating estimates on AMD given our trust that AMD would be the number one beneficiary of the CPU renaissance and our trust that Meta is likely one of the greatest consumers of AMD’s server trade.“
Citi believes AMD will likely be a key participant within the age of agentic AI. Not like generative AI that is dependent upon GPU (Graphics Processing Unit) energy, agentic AI is dependent extra on CPU (Central Processing Unit) energy.
Consistent 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 Expansion Charge). Malik says, “We nonetheless be expecting AMD to be the important thing beneficiary of the CPU renaissance and Intel as a secondary beneficiary.“
AMD has been probably the most best-performing shares amid an AI growth. The corporate’s income has again and again beat Wall Boulevard expectancies. AMD registered a income surged of just about 50% yr over yr to $11.5 billion. Analyst projections, in the meantime, have been at roughly $11.34 billion. The fashion is prone to proceed given the rising call for for AI chips and knowledge facilities.
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AMD additionally just lately introduced that it is going to achieve World Labs, a number one AI fashion lab, for $8.2 billion. The purchase would possibly additional reinforced Wall Boulevard expectancies for AMD’s inventory worth. The inventory just lately hit a brand new all-time top of $658.52 on October fifth, 2026. The corporate’s marketplace cap additionally breached the $1 trillion mark in overdue September, changing into probably the most few firms on the planet to take action.