Citi Optimistic About AMD's GPU Business Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: stocktwits
- Stock Surge: AMD shares rose 4.73% after Citi analyst upgraded the stock from 'Neutral' to 'Buy', indicating increased market attention towards its GPU potential.
- Market Expectations: Citi analyst Malik estimates that investors assign only a 60% probability that AMD will exceed $50 billion in GPU revenue by 2028, suggesting that the market has not fully recognized the potential of its GPU business.
- Partnership with Meta: The 6-GW AI infrastructure partnership between AMD and Meta, which includes a custom AMD Instinct GPU based on the MI450 architecture, could be a key growth driver for AMD, particularly in capturing Meta's demand.
- Price Target Increase: Citi raised AMD's price target from $460 to $575, implying over an 11% upside from the last traded price, reflecting a bullish outlook on its GPU business.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 511.570
Low
210.00
Averages
289.13
High
377.00
Current: 511.570
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AMD Market Share Increase: AMD doubled its total addressable market estimate for server CPUs to $120 billion last month, with a projected 70% revenue growth by 2026, demonstrating strong demand and market potential in AI inference applications.
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