Citi Upgrades AMD Stock, Raises Price Target to $575
Citi analyst Atif Malik upgraded AMD to Buy from Neutral and increased the price target to $575 from $460. The stock rose 4.73% following the upgrade.
Key Numbers
After months of skepticism, one of Wall Street's most closely watched chip analysts changed his stance on AMD (NASDAQ:AMD). On June 12, Citi analyst Atif Malik upgraded the stock from "Neutral" to "Buy" and raised his price target to $575 from $460. Shares jumped 4.73% on the news.
Rating Change
- Previous Rating: Neutral
- New Rating: Buy
- Previous Price Target: $460
- New Price Target: $575
Analyst's Rationale
Malik believes AMD is well-positioned to capitalize on growing demand for AI chips, particularly with new products like the MI300 processor. He also cited improved prospects in the data center market.
Context
Malik was one of the few analysts who remained on the sidelines while AMD rode the broader AI rally. Other analysts, such as those at Morgan Stanley, have mixed ratings. The stock has gained over 80% in the past year.
What to Make of It
Citi's upgrade reflects growing confidence in AMD's ability to compete in the AI chip market, but investors should weigh the optimism against the stock's already elevated valuation.
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