Superior Micro Gadgets (AMD) inventory has already greater than doubled this 12 months, however Citi analysts led by Atif Malik stay satisfied it has vital 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 in recent times, 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 developed right into a legit “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), an enormous win that cements its standing as a formidable different within the AI {hardware} panorama, he added.
Citi now sees the agency’s AI chips income greater than doubling to $33 billion subsequent 12 months and pushing additional as much as practically $51 billion in 2028.
Word that Superior Micro Gadgets 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 Larger in 2026
On the CPU entrance, Malik is doubling down on AMD’s long-term dominance, significantly as agentic synthetic intelligence drives an inflection in processor demand.
Following Computex, he believes the CPU whole addressable market (TAM) will soar to an thrilling $137 billion, with AMD positioned as the first beneficiary of this “CPU renaissance.”
The Citi professional cited AMD’s “efficiency management, better core counts, X86 ISA, broader SKU choices, and help for each multithreading and single threading” for his constructive view.
AMD shares are compelling additionally as a result of the enormous has practically $10 billion approved for buybacks.
Wall Road Stays Bullish on Superior Micro Gadgets
Crucially, Citi isn’t alone in preserving bullish on AMD inventory for the subsequent 12 months.
The consensus ranking on Superior Micro Gadgets additionally presently sits at “Robust Purchase” with worth targets going as excessive as $665 indicating potential for one more 30% rally from right here.