Advanced Micro Devices (AMD) shares rose approximately 2% on Friday following a rating upgrade from Citi. Analyst Atif Malik raised the stock to Buy from Neutral and increased the price target from $460 to $575.
Malik argues the market currently undervalues AMD’s potential in the graphics processing unit (GPU) sector. The firm expects AMD to emerge as a critical secondary supplier for AI chips.
Citi projects AMD will secure a significant portion of GPU orders from Meta. While often categorized as a CPU company, AMD is positioned for substantial sales growth driven by artificial intelligence demand.