AMD (AMD) Stock Soars 8% on Wall Street Upgrades: Analysts See Major GPU Growth Ahead

Key Takeaways

• Bank of America’s Vivek Arya increased his 2030 server CPU addressable market forecast to $170 billion from $125 billion, naming AMD his preferred choice in the category
• Arya boosted his AMD target price to $560 from $500, highlighting the company’s strategic positioning and forthcoming “Venice” server processor lineup
• Citi shifted AMD to Buy from Neutral, increasing its target to $575 from $460, arguing the market undervalues AMD’s GPU opportunities
• Citi projects AMD will capture the majority of GPU orders from Meta through custom MI450 chips ramping in the latter half of 2026, forecasting $33 billion in AI revenue by 2027
• Shares of AMD finished Thursday’s session up approximately 8%, propelled by consecutive analyst endorsements

While Thursday appeared relatively uneventful for the broader technology sector, Advanced Micro Devices had a different story to tell.

Shares of Advanced Micro Devices (AMD) climbed approximately 8% during Thursday’s trading session after two prominent Wall Street firms issued optimistic assessments on the chipmaker within hours of each other, pushing shares to roughly $488.66.

Advanced Micro Devices, Inc., AMD

Bank of America’s Vivek Arya initiated the bullish wave before market open. He elevated his projection for the 2030 server CPU addressable market to $170 billion, a significant jump from his earlier $125 billion estimate. Arya positioned AMD as his top selection within the CPU market.

Arya identified agentic AI as the primary catalyst behind his revised outlook. He anticipates a 37% compound annual growth trajectory for server CPUs spanning 2025 through 2030. That’s a substantial projection, and AMD is positioned squarely within that growth path.

Accompanying the upgrade, he elevated his price objective on AMD to $560 from $500, emphasizing AMD’s strategic positioning for the long term and the imminent release of its “Venice” next-generation server processors as primary justifications.

Citi Follows With Bullish Call

Shortly after, Citi contributed additional upward momentum. Analyst Atif Malik elevated AMD to Buy from Neutral and increased his price objective to $575 from $460.

Malik’s thesis is clear: Wall Street predominantly views AMD through a CPU lens. The GPU narrative, according to his analysis, remains largely unaccounted for in current valuations.

Citi anticipates AMD will secure the bulk of GPU contracts from Meta, with customized MI450 chips delivering Meta superior total cost of ownership compared to competing merchant GPU offerings.

The firm referenced a previously disclosed arrangement between AMD and Meta — a six-gigawatt, four-year commitment involving a 160 million share common stock warrant. The initial one-gigawatt phase is projected to scale up during the second half of 2026 and continue into 2027.

Citi calculates that each gigawatt within that arrangement represents approximately $15 billion in revenue opportunity for AMD.

Aggressive AI Revenue Projections

Leveraging that partnership and expanding GPU traction, Citi now projects AMD’s AI-related sales will reach $33 billion in 2027, representing 137% year-over-year growth, and $50.8 billion in 2028, reflecting 54% growth.

These figures would establish AMD as a significantly more dominant GPU competitor than current market pricing suggests.

Regarding CPUs, Citi also revised its 2030 addressable market projection upward to $136.7 billion from $131.5 billion following Computex. This reflects a 36% CAGR from $29.3 billion in 2025.

Citi’s updated 2026-2028 earnings per share projections exceed Street consensus by 12% to 13%. Its $575 target price derives from a sum-of-the-parts analysis: $281 per share attributed to data center GPU, $204 per share for CPU, combined with contributions from client segments, gaming, embedded operations, and approximately $35 per share in net cash position.

AMD’s 52-week trading range spans from $115.06 to $546.44. Thursday’s closing price of $488.66 positions it considerably above the midpoint of that spectrum.

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