Superior Micro Units (AMD) inventory has already greater than doubled this yr, however Citi analysts led by Atif Malik stay satisfied it has important additional room to the upside.
In a analysis notice on Friday, Malik upgraded the chipmaker to “Purchase” and raised his worth goal to $575, indicating potential upside of greater than 12% from present ranges.
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AMD shares have been a profitable funding lately, presently up greater than 500% versus mid-2021.
AMD Inventory Is Strongly Positioned Inside the GPU Market
Malik favors shopping for AMD inventory at present ranges primarily as a result of the corporate has efficiently advanced right into a professional “second supply” within the high-margin GPU market.
AMD is strongly positioned to seize the lion’s share of GPU enterprise at Meta Platforms (META), a large win that cements its standing as a formidable various within the AI {hardware} panorama, he added.
Citi now sees the agency’s AI chips income greater than doubling to $33 billion subsequent yr and pushing additional as much as almost $51 billion in 2028.
Be aware that Superior Micro Units has a historical past of gaining greater than 6.5% on common in July, a seasonal sample that makes it much more engaging to personal within the close to time period.
CPU Management to Drive AMD Shares Increased in 2026
On the CPU entrance, Malik is doubling down on AMD’s long-term dominance, notably as agentic synthetic intelligence drives an inflection in processor demand.
Following Computex, he believes the CPU complete addressable market (TAM) will soar to an thrilling $137 billion, with AMD positioned as the first beneficiary of this “CPU renaissance.”
The Citi skilled cited AMD’s “efficiency management, larger core counts, X86 ISA, broader SKU choices, and assist for each multithreading and single threading” for his constructive view.
AMD shares are compelling additionally as a result of the large has almost $10 billion approved for buybacks.
Wall Avenue Stays Bullish on Superior Micro Units
Crucially, Citi isn’t alone in holding bullish on AMD inventory for the subsequent 12 months.
The consensus score on Superior Micro Units additionally presently sits at “Robust Purchase” with worth targets going as excessive as $665 indicating potential for one more 30% rally from right here.
