Citi Upgrades AMD to Buy, Sees Rising GPU Power

Citi upgraded Advanced Micro Devices, Inc. (NASDAQ:AMD) to "Buy" from "Neutral" and raised its price target to $575 from $460. The firm believes that the upside from AMD's graphics processing unit (GPU) business is not fully reflected in the current share price.

Rating Change

• Previous Rating: Neutral
• New Rating: Buy
• Previous Price Target: $460
• New Price Target: $575

Analyst Rationale

Citi sees AMD as a rising force in the GPU market, a segment currently dominated by Nvidia. Analysts believe AMD's new products, such as the MI300 series, are gaining traction in data centers and high-performance computing, which could drive future growth.

Context

The upgrade comes after a strong performance for AMD shares over the past year, rising more than 50%. However, AMD still trades at a lower premium compared to rival Nvidia. Other analysts, including those from Morgan Stanley and Goldman Sachs, have mixed ratings, ranging from Neutral to Positive.

What to Make of It

Citi's upgrade reflects growing optimism about AMD's GPU business, but investors should consider competitive risks and the relatively high valuation. The final decision depends on each investor's goals and risk tolerance.