AMD Stock Soars as Meta’s AI Agent Fuels Chip Demand

TLDR

• Citi analyst Atif Malik raised his AMD price target to $800 from $575 and kept a Buy rating.
• The new target implies a possible 27% rise from Monday’s closing price.
• Malik’s bullish call is tied to Meta’s reliance on AMD chips and the growth of agentic AI tools like Muse.
• AMD stock rose about 2% on Tuesday, building on a 195% gain so far this year.
• Other top analysts at Mizuho and Stifel also raised their targets this week, citing AMD’s upcoming November 3 earnings report.

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AMD stock climbed about 2% on Tuesday to trade near $644 a share. The move came after Citi analyst Atif Malik raised his price target on the chip maker to $800 from $575.

Advanced Micro Devices, Inc., AMD

Malik kept his Buy rating in place. His new target points to a possible 27% gain from Monday’s closing price.

The analyst’s optimism centers on Meta Platforms. He says Meta relies heavily on AMD’s central processing units to run its server business.

Malik believes agentic AI tools, like Meta’s new assistant Muse, will push chip demand much higher than traditional chatbots ever did. Chatbots sit idle between messages. Agents run constantly in the background, which means they burn through far more compute, memory, and networking power.

Why Citi Sees a CPU Boom

Malik expects the CPU market to grow about 60% a year on average through the end of the decade. He pegs the market’s size at $29 billion in 2025, growing to roughly $300 billion by 2030.

He calls AMD the primary beneficiary of what he describes as a coming “CPU renaissance.” Intel comes in second on his list of winners.

AMD isn’t just watching from the sidelines either. CEO Lisa Su told reporters in Taiwan on Tuesday that the company plans to substantially increase chip supply in 2027 to keep pace with demand.

That’s a notable show of confidence from the top of the company. It suggests AMD’s leadership expects the AI wave to keep building, not fade.

More Analysts Pile On

Malik wasn’t alone in raising his outlook this week. Two other highly ranked analysts bumped their AMD targets on Monday.

Mizuho’s Vijay Rakesh raised his target to $705 from $580, also keeping a Buy rating. Stifel’s Ruben Roy lifted his target to $700 from $635, with Roy predicting AMD will beat earnings estimates and raise its guidance.

AMD reports earnings on November 3. That date is clearly on analysts’ minds as they race to update their numbers beforehand.

Malik’s track record carries weight here too. He ranks first out of more than 12,500 analysts tracked by TipRanks, with an 80% success rate and an average return of 49.1% per rating.

Wall Street’s broader view on AMD remains firmly positive. The stock carries a Strong Buy consensus rating, built from 30 Buy calls and six Holds over the past three months.

The average price target across all those analysts sits at $662.38. That’s a smaller but still real potential upside of about 5% from current levels.

AMD has already topped a $1 trillion valuation, crossing that mark for the first time last month. The rally followed Muse’s fast rise in popularity after Meta launched the AI agent.

For now, the stock sits just under $644, up roughly 2% on the day and up 195% year to date.