AMD stock gained 2.7% on Tuesday after Citi raised its price target on Advanced Micro Devices to $800 from $575, citing the potential impact of agentic artificial intelligence on demand for computing infrastructure.
Citi analyst Atif Malik reiterated a Buy rating on AMD and said the firm now expects the CPU market to reach $300 billion by 2030.
The revised outlook follows the launch of several personal AI agents, including Muse, Dots, Instinct, GrokBot and GeminiSpark.
Malik said agentic AI could drive significantly higher compute demand than traditional chatbots because AI agents can operate continuously and autonomously execute multi-step tasks.
Citi sees $300B CPU market by 2030
Citi estimates that the total addressable market for CPUs could expand from $29 billion in 2025 to $300 billion by 2030.
Malik said the firm updated its CPU model following the emergence of personal AI agents.
He argued that agents differ from traditional chatbots because they can continue operating between direct user interactions.
The analyst highlighted cybersecurity as an example of a potential use case where always-on agents could generate substantially higher token volumes.
This could increase inference and computing demand across both enterprise and consumer workloads.
Malik also identified Meta Platforms’ Muse as one of the first agentic AI agents to launch at what he described as true social-network scale.
However, he noted that its eventual computing requirements remain an important uncertainty for the broader AI infrastructure market.
Citi sees AMD as a key beneficiary of what Malik called a potential CPU renaissance.
The analyst also noted that Meta is among AMD’s largest customers in its server business.
AMD plans to increase chip supply in 2027
AMD is also preparing to increase chip production as AI demand continues to exceed its current supply capacity.
CEO Lisa Su said during a visit to Taipei on Tuesday that the company had increased supply during 2026 and planned to substantially increase it in 2027, according to Reuters.
Su expects chip demand to remain high for the next few years. She also said AMD needs additional advanced wafer capacity and is now planning supply three to five years ahead.
The company is working with suppliers to expand production of central processing units and graphics processing units.
Su had met with Foxconn and was scheduled to meet Taiwan Semiconductor Manufacturing Co. as part of the effort.
AMD is also working with memory suppliers to secure enough components.
Memory remains constrained across the industry, including high-bandwidth memory used in AI servers, Su said, according to Taiwan’s Central News Agency.
Data centre revenue more than doubles
AMD’s latest results underscore the strength of demand for its data centre products.
Second-quarter data centre revenue reached $6.7 billion, up 107% year over year, driven by demand for EPYC processors and Instinct GPUs.
The segment represented 58% of AMD’s total quarterly revenue of $11.5 billion.
AMD also expects its Helios rack-scale AI systems to support further growth.
The systems were already in production according to the company’s July statement, with OpenAI deployments expected to begin in the fourth quarter and accelerate through 2027.
With Citi projecting a $300 billion CPU market by 2030, many investors track long-term AI infrastructure plays like AMD through investment platforms.
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