Advanced Micro Devices is emerging as a leading secondary supplier of graphics processing units, challenging Nvidia’s dominance, according to Citi. The investment firm upgraded AMD from a neutral stance to a buy rating and raised its price target to $575, representing more than a 17% upside from the previous close. Analyst Atif Malik projects that AMD’s earnings per share will exceed $20 by 2028, driven by growing demand for its AI GPUs, especially from Meta Platforms. Malik notes that Meta’s use of custom MI450 GPUs could deliver a lower total cost of ownership compared with standard merchant GPUs, and the two companies announced a multi‑year partnership to deploy up to six gigawatts of AMD GPUs in data centers, valued at roughly $15 billion per gigawatt for AMD. While Nvidia remains the market leader and recently secured its own agreement with Meta, AMD’s expanding presence and rising CPU demand linked to agentic AI further strengthen its outlook. Citi has increased its AI‑related revenue forecasts, expecting about $33 billion in 2027 and $50.8 billion in 2028. AMD’s shares rose modestly in premarket trading, extending a year‑to‑date gain of more than 100%, and the majority of analysts maintain a bullish stance, with 43 of 53 covering it rating the stock a buy or strong buy.
