Street ups AMD stock targets as personal AI agents drive demand
Investing.com -- Citi and Mizuho raised their price targets on AMD, saying the launch of personal AI agents such as Meta’s Muse will drive a surge in demand for server CPUs, with AMD seen as the main beneficiary.
Citi lifted its AMD target to $800, viewing the chipmaker as the primary CPU beneficiary because Meta is one of the largest customers of its server business. It raised its 2030 CPU market forecast to $300 billion from $29 billion in 2025, a 60% compound annual growth rate. "We view agentic AI as a potential orders-of-magnitude driver of compute demand relative to traditional chatbots," the bank’s analysts wrote.
Unlike chatbots, which sit largely idle between user interactions, always-on agents can operate continuously, driving more inference-related compute, memory and networking use across enterprise and consumer workloads, Citi said. The bank also named Intel as a secondary beneficiary.
Mizuho raised its AMD target to $705 from $580, keeping an Outperform rating. The new target is about 41 times fiscal 2027 estimated earnings, up from roughly 34 times. Analyst Vijay Rakesh estimates agentic AI will drive about 30% of server CPU units by 2030, with the agentic CPU market reaching about $80 billion, up 123% a year, and the total server CPU market about $209 billion, below AMD’s own target of more than $220 billion.
Mizuho said Muse passed 5 million downloads in 22 days, faster than ChatGPT, Grok or Claude. It raised its Intel target to $114 from $92 and kept a Neutral rating, saying rising CPU demand is "lifting all boats."
Both banks see knock-on benefits elsewhere. Citi reiterated Buy on Nvidia with a $315 target. It estimates each Muse user needs about 0.0020 GB200-class GPUs, implying 200,000 to 390,000 Blackwell-class GPUs and $7 billion to $19 billion in one-time Nvidia revenue at 100 million daily users.
Mizuho also raised its targets on Dell to $650 from $600, SanDisk to $2,050 from $1,875 and Super Micro Computer to $43 from $35, citing strong agentic AI server and memory demand.
Citi added that CPUs have a large attach rate for memory, noting Micron has said CPUs are creating more of a constraint on DRAM, with Muse as an example.