Major

Bank

America

Meta

<h3 id="key-takeaways">Key Takeaways</h3>
<ul>
 <li>Bank of America’s Vivek Arya increased his 2030 server CPU addressable market forecast to $170 billion from $125 billion, naming AMD his preferred choice in the category</li>
 <li>Arya boosted his AMD target price to $560 from $500, highlighting the company’s strategic positioning and forthcoming “Venice” server processor lineup</li>
 <li>Citi shifted AMD to Buy from Neutral, increasing its target to $575 from $460, arguing the market undervalues AMD’s GPU opportunities</li>
 <li>Citi projects AMD will capture the majority of GPU orders from Meta through custom MI450 chips ramping in the latter half of 2026, forecasting $33 billion in AI revenue by 2027</li>
 <li>Shares of AMD finished Thursday’s session up approximately 8%, propelled by consecutive analyst endorsements</li>
</ul>
While Thursday appeared relatively uneventful for the broader technology sector, Advanced Micro Devices had a different story to tell.
Shares of Advanced Micro Devices (AMD) climbed approximately 8% during Thursday’s trading session after two prominent Wall Street firms issued optimistic assessments on the chipmaker within hours of each other, pushing shares to roughly $488.66.
<a href="https://knockoutstocks.com/stock/AMD" rel="noopener noreferrer nofollow"> <img src="https://knockoutstocks.com/api/stocks/AMD/embed" alt="AMD Stock Card"> Advanced Micro Devices, Inc., AMD </a>
Bank of America’s Vivek Arya initiated the bullish wave before market open. He elevated his projection for the 2030 server CPU addressable market to $170 billion, a significant jump from his earlier $125 billion estimate. Arya positioned AMD as his top selection within the CPU market.
Arya identified agentic AI as the primary catalyst behind his revised outlook. He anticipates a 37% compound annual growth trajectory for server CPUs spanning 2025 through 2030. That’s a substantial projection, and <a href="https://coincentral.com/amd-stock-drops-3-4-as-350m-cloud-bet-sparks-circular-funding-fears/" rel="noopener noreferrer nofollow">AMD</a> is positioned squarely within that growth path.
Accompanying the upgrade, he elevated his price objective on AMD to $560 from $500, emphasizing AMD’s strategic positioning for the long term and the imminent release of its “Venice” next-generation server processors as primary justifications.
<h3 id="citi-follows-with-bullish-call">Citi Follows With Bullish Call</h3>
Shortly after, Citi contributed additional upward momentum. Analyst Atif Malik elevated AMD to Buy from Neutral and increased his price objective to $575 from $460.
Malik’s thesis is clear: Wall Street predominantly views AMD through a CPU lens. The GPU narrative, according to his analysis, remains largely unaccounted for in current valuations.
Citi anticipates AMD will secure the bulk of GPU contracts from <a href="https://coincentral.com/is-meta-stock-a-buy-right-now-bofa-thinks-so-but-theres-a-catch/" rel="noopener noreferrer nofollow">Meta</a>, with customized MI450 chips delivering Meta superior total cost of ownership compared to competing merchant GPU offerings.
The firm referenced a previously disclosed arrangement between AMD and Meta — a six-gigawatt, four-year commitment involving a 160 million share common stock warrant. The initial one-gigawatt phase is projected to scale up during the second half of 2026 and continue into 2027.
Citi calculates that each gigawatt within that arrangement represents approximately $15 billion in revenue opportunity for AMD.
<h3 id="aggressive-ai-revenue-projections">Aggressive AI Revenue Projections</h3>
Leveraging that partnership and expanding GPU traction, Citi now projects AMD’s AI-related sales will reach $33 billion in 2027, representing 137% year-over-year growth, and $50.8 billion in 2028, reflecting 54% growth.
These figures would establish AMD as a significantly more dominant GPU competitor than current market pricing suggests.
Regarding CPUs, Citi also revised its 2030 addressable market projection upward to $136.7 billion from $131.5 billion following Computex. This reflects a 36% CAGR from $29.3 billion in 2025.
Citi’s updated 2026-2028 earnings per share projections exceed Street consensus by 12% to 13%. Its $575 target price derives from a sum-of-the-parts analysis: $281 per share attributed to data center GPU, $204 per share for CPU, combined with contributions from client segments, gaming, embedded operations, and approximately $35 per share in net cash position.
AMD’s 52-week trading range spans from $115.06 to $546.44. Thursday’s closing price of $488.66 positions it considerably above the midpoint of that spectrum.
The post <a href="https://blockonomi.com/amd-amd-stock-soars-8-on-wall-street-upgrades-analysts-see-major-gpu-growth-ahead/" rel="noopener noreferrer nofollow">AMD (AMD) Stock Soars 8% on Wall Street Upgrades: Analysts See Major GPU Growth Ahead</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

AMD (AMD) Stock Soars 8% on Wall Street Upgrades: Analysts See Major GPU Growth Ahead

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