Citi now thinks AMD stock could rip another 25% because of Meta Muse

Key Points:

• Citi analyst Atif Malik raised AMD's price target from $575 to $800, citing AMD as the primary beneficiary of the expanding CPU market driven by Meta's AI initiatives and a growing demand for compute power.
• Malik projects the CPU total addressable market to grow from $29 billion in 2025 to $300 billion by 2030, with AMD leading this "CPU renaissance" and Intel as a secondary beneficiary.
• AMD recently agreed to acquire AI model lab World Labs for $8.2 billion, a strategic move to enhance its AI software capabilities; the deal is expected to close by the end of 2026.
• AMD reported record Q2 results with earnings per share of $1.66 and $11.5 billion in revenue, driven by strong performance in its Data Center segment, including EPYC server CPUs and Instinct AI accelerators.
• The company forecasts significant growth in server CPU and data center revenue through 2027, with expectations of an 80% increase in second-half 2026 server CPU revenue and more than doubling data center revenue in 2027.