AMD
META
The upgrade machine is still running
AMD can’t seem to leave the analyst spotlight alone. After ripping 7.97% the day before, the stock kept creeping higher Friday morning as Citi’s Atif Malik upgraded it to Buy from Neutral and boosted the price target to $575 from $460.
The vibe here is pretty simple: Wall Street is getting increasingly convinced AMD isn’t just the “other chip company.” Citi said the market still hasn’t fully priced in AMD as a legit second source in the GPU market, which is analyst-speak for: there may be room for a lot more upside if buyers want a Plan B to Nvidia.
Why Meta keeps showing up in the story
A big part of the bull case is AMD’s AI setup with Meta. Citi said AMD is poised to grab a huge chunk of GPU business at Meta, helped by its custom MI450 chips and a six-gigawatt, four-year deal that includes a 160 million-share warrant.
That matters because this isn’t just “AI” as a buzzword pinned to a stock chart. It’s actual demand, actual hardware, and a roadmap that starts with an initial one-gigawatt tranche in the second half of 2026 and stretches into 2027.
The rally has room — but it’s not a straight line
AMD’s chart still looks sturdy, with the stock trading above its key moving averages and flirting with its 52-week high zone. But momentum indicators are starting to cool off a bit, which is trader-speak for: the stock isn’t exactly sprinting with a full tank anymore.
Still, the broader setup is hard to ignore. Citi now sees AMD’s AI revenue hitting $33 billion in 2027 and $50.8 billion in 2028. That’s the kind of forecast that makes investors sit up a little straighter in their chair.
Big picture: AMD’s move is about more than a sunny analyst note. It’s a reminder that the AI chip race is still early, and the market is trying to decide whether AMD is a true challenger — or just the scrappy understudy that keeps getting better reviews.