Citi Raises Amd Stock Target to $575 After Buy Upgrade
AMD stock rose 4.6% in the afternoon after Citi analyst Atif Malik upgraded the shares to Buy from Neutral and lifted the price target to $575 from $460. The move gives investors a higher valuation benchmark for a stock that was already trading near record levels.
The note centered on AMD’s custom MI450 chips and Citi’s view that the market has not fully recognized AMD as a legit second source in the GPU market. That stance matters for holders because it shifts the debate from whether AMD can compete in AI chips to how much of that business the shares may still be discounting.
Atif Malik lifts Citi view
4.6% was the size of AMD’s afternoon jump, with shares changing hands at $515.92 after the upgrade. Malik’s call changed the rating to Buy from Neutral, and the new $575 target sits $115 above the prior $460 level. AMD was already up 131% since the beginning of the year, leaving little room for a casual read of the move.
$542.52 was AMD’s 52-week high from June 2026, and the stock was close to that level when Citi issued the note. The combination of a fresh Buy rating and a target above the recent peak gave traders a clear reason to reprice the stock rather than wait for the next earnings print.
MI450 chips and Meta deal
Six-gigawatt was the size of the supply deal Citi cited, and it runs for four years. The arrangement includes a 160 million-share warrant and starts ramping with an initial one-gigawatt tranche in the second half of 2026. Citi said AMD’s custom MI450 chips give Meta Platforms lower total cost of ownership than Nvidia alternatives, which ties the analyst’s case directly to customer economics rather than hype around AI demand.
$33 billion is Citi’s near-term projection for AMD’s AI GPU revenue, rising to $50.8 billion thereafter. Those figures imply the brokerage expects the GPU business to stay the main engine behind the stock’s rerating, but they also set a demanding bar for execution once the first tranche starts ramping in the second half of 2026.
What the new target signals
131% is how far AMD has climbed since the beginning of the year, and that run helps explain why Citi’s note drew such a fast response. A stock that has already moved that far can still move higher if a new analyst call reframes the size of the addressable market, but the gap between $515.92 and $575 also leaves the shares dependent on sustained confidence in GPU share gains.
Atif Malik’s quote was blunt: “the market has yet to fully recognize AMD as a legit second source in the GPU market.” If that view holds, the stock’s next leg depends less on proving AMD can participate and more on how much of the AI GPU opportunity the market is willing to assign before the MI450 ramp begins.
