Citi raises AMD price target to $800, citing Meta's AI launch

Citi analyst Atif Malik increased his price target for AMD to $800 from $575, prompting the stock to rise about 1% in pre-market trading and set to open at a new record high. Malik said the upgrade reflects AMD’s position as a primary beneficiary of a projected "CPU renaissance" and its role as a major supplier to Meta’s server operations.

"Following the release of Meta Muse and our subsequent CPU TAM raise, we are raising estimates on AMD given our belief that AMD will be the primary beneficiary of the CPU renaissance and our belief that Meta is one of the largest customers of AMD's server business," Malik said. He added that the launch of Meta’s personal AI agent, Muse, could dramatically boost compute demand, expanding the total addressable market for CPUs from $29 billion in 2025 to $300 billion by 2030, a compound annual growth rate of about 60%. Malik expects AMD to lead the market, with Intel as a secondary beneficiary. "We update our CPU model post the launch of Muse, Meta's personal AI agent. Fundamentally, we view agentic AI as a potential orders-of-magnitude driver of compute demand relative to traditional chatbots," he said. AMD recently announced an $8.2 billion acquisition of World Labs, a San Francisco AI model lab focused on 3D environments, with the deal slated to close by the end of 2026. The company also reported record second-quarter results, posting non-GAAP earnings per share of $1.66 and revenue of $11.5 billion, driven by a data-center segment that saw revenue more than double year over year to $6.7 billion. Analysts expect AMD’s server CPU revenue to grow 80% year over year in the second half of 2026 and 70% in 2027, with overall data-center revenue projected to more than double by 2027 and AI GPU revenue to rise sharply. "The CPU renaissance is playing out," Evercore ISI analyst Mark Lipacis said.