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Advanced Micro Devices (AMD) stock has already more than doubled this year, but Citi analysts led by Atif Malik remain convinced it has significant further room to the upside.
In a research note on Friday, Malik upgraded the chipmaker to “Buy” and raised his price target to $575, indicating potential upside of more than 12% from current levels.
AMD shares have been a lucrative investment in recent years, currently up more than 500% versus mid-2021.
AMD Stock Is Strongly Positioned Within the GPU Market
Malik favors buying AMD stock at current levels primarily because the company has successfully evolved into a legitimate “second source” in the high-margin GPU market.
AMD is strongly positioned to capture the lion’s share of GPU business at Meta Platforms (META), a massive win that cements its status as a formidable alternative in the AI hardware landscape, he added.
Citi now sees the firm’s AI chips revenue more than doubling to $33 billion next year and pushing further up to nearly $51 billion in 2028.
Note that Advanced Micro Devices has a history of gaining more than 6.5% on average in July, a seasonal pattern that makes it even more attractive to own in the near term.
CPU Leadership to Drive AMD Shares Higher in 2026
On the CPU front, Malik is doubling down on AMD’s long-term dominance, particularly as agentic artificial intelligence drives an inflection in processor demand.
Following Computex, he believes the CPU total addressable market (TAM) will soar to an exciting $137 billion, with AMD positioned as the primary beneficiary of this “CPU renaissance.”
The Citi expert cited AMD’s “performance leadership, greater core counts, X86 ISA, broader SKU offerings, and support for both multithreading and single threading” for his constructive view.
AMD shares are compelling also because the giant has nearly $10 billion authorized for buybacks.
Wall Street Remains Bullish on Advanced Micro Devices
Crucially, Citi isn’t alone in keeping bullish on AMD stock for the next 12 months.
The consensus rating on Advanced Micro Devices also currently sits at “Strong Buy” with price targets going as high as $665 indicating potential for another 30% rally from here.
