Citi analyst Atif Malik raised his price target on AMD to $800 from $575 on Tuesday, citing the chipmaker as the primary beneficiary of a CPU renaissance sparked by the release of Meta's Muse personal AI agent. Malik said Meta is one of the largest customers of AMD's server business, and he now expects the CPU total addressable market to expand from $29 billion in 2025 to $300 billion in 2030, a 60% compound annual growth rate, with Intel as a secondary beneficiary. AMD shares rose 1% in premarket trading and looked set to open at another record high. The call follows a run of bullish catalysts for AMD, including an agreement two weeks ago to acquire World Labs, a San Francisco-based AI model lab led by Dr. Fei-Fei Li, for $8.2 billion, a deal expected to close by the end of 2026. In early August, AMD beat Wall Street expectations across the board for the second quarter, posting record non-GAAP earnings per share of $1.66 versus consensus estimates of $1.61, with total revenue surging 50% year over year to a record $11.5 billion, clearing analyst projections of approximately $11.34 billion, driven by a Data Center segment whose revenue more than doubled year over year to $6.7 billion. AMD projected second-half 2026 server CPU revenue to grow 80% year over year and 70% in 2027, and expects data center revenue to more than double in 2027, with AI graphics processing unit revenue growing well over 100%.
Advanced Micro Devices Inc
Alphabet Inc Class C
Meta Platforms Inc.