Citi reiterates Buy rating on AMD with $575 price target post TMT conference

Citi analyst Atif Malik reiterated a Buy rating and $575.00 price target on Advanced Micro Devices (NASDAQ: AMD), following meetings with AMD's CFO Jean Hu and Head of Investor Relations Matt Ramsay at Citi's Global TMT Conference.

According to the analyst's notes, AMD updated its total addressable market estimate to $2 trillion by 2030 and said its data center business is expected to more than double next year. The company's MI450 product is set to launch in the current quarter, with a ramp planned for the fourth quarter and into next year.

AMD reported that its Helios rack-scale product ramp is progressing, with volume in 2027 exceeding initial management expectations. The company said it has three anchor customers, identified as Meta and two AI labs, all of whom provided forecasts larger than their initial agreements.

On the server CPU side, AMD updated its server CPU total addressable market estimate to $220 billion by 2030, up from a prior estimate of $25 billion in 2025, citing growth in agentic AI workloads. AMD's enterprise server business grew 70% in the second quarter of 2026. The company said it aims to capture 50% of its server CPU TAM, which it estimates would represent a $100 billion server business.

AMD noted that its CPU business is expected to expand more than 80% year-over-year in the second half of the current year. Shares of AMD closed at $477.57 prior to the announcement.

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