Shares of Advanced Micro Devices Inc. ($AMD) climbed 4.6% in afternoon trading on June 12, 2026, following a bullish upgrade from Citi analyst Atif Malik, who raised the price target to $575 from $460 and shifted the rating from Neutral to Buy. The upgrade centers on AMD’s expanding role as a significant second source in the AI GPU market, particularly through its custom MI450 chips. Citi highlights a major four-year, six-gigawatt supply agreement with Meta Platforms, which includes a 160 million-share warrant and is expected to ramp starting in the second half of 2026. This deal positions AMD to offer Meta a lower total cost of ownership compared to Nvidia alternatives, fueling expectations for AMD’s AI GPU revenue to reach $33 billion near term and potentially grow to $50.8 billion in the following years.
The market’s reaction reflects growing confidence in AMD’s broader data center strategy beyond its traditional CPU business. Despite the stock’s volatility—marked by 42 moves greater than 5% over the past year—investors are increasingly recognizing AMD’s potential to capture meaningful AI infrastructure market share. At $515.92 per share, $AMD is trading close to its 52-week high of $542.52 from June 2026, and the company has surged 131% year-to-date. Citi’s analysis also projects a robust CPU market expansion, with a 36% compound annual growth rate through 2030, underpinning a sum-of-parts valuation that values the GPU segment at $281 per share and CPUs at $204 per share.
Meanwhile, the chip sector overall benefited from easing macroeconomic pressures after the announcement of the Iran peace deal, which helped lower oil prices and Treasury yields, thus lifting semiconductor stocks including $AMD. This backdrop supports sustained AI infrastructure spending, with hyperscalers placing significant production orders domestically. AMD’s rally on this day also outpaced Nvidia’s flat performance, though Intel led the chip sector with an 8% gain.
With markets currently closed for the weekend, investors will be watching closely when trading resumes Monday morning at 9:30 AM ET to see if this momentum continues for $AMD amid a competitive and rapidly evolving AI chip landscape.
Did you know?
The stock market has historically rewarded companies that lead in innovation—semiconductor firms like AMD often see sharp price moves when they secure major deals or breakthroughs in technology, reflecting investor excitement about future growth potential.
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