Citi Upgrades AMD to Buy; Shares Jump 4.7% on $575 Target

Citi analyst Atif Malik upgraded Advanced Micro Devices to Buy from Neutral on June 12, raising his price target to $575 from $460. Shares jumped 4.73% on the call.

Malik had held a Neutral rating on the stock for months while the broader AI rally lifted chip names across the sector. The upgrade marks a sharp turn. He now sees AMD's positioning in the AI chip market improving enough to warrant a bullish stance.

The move brings him closer to the most optimistic views on Wall Street. AMD's MI300X accelerator competes directly with Nvidia's H100. Several analysts have argued that cloud providers will seek a second source for AI chips, which could give AMD a real opening. Malik's upgrade suggests he now believes that opening is material enough to affect earnings.

AMD shares had lagged the broader chip index this year. Skepticism about the company's software stack and its ability to match Nvidia's performance held the stock back. The upgrade offers a fresh catalyst. If AMD delivers on its roadmap, the stock could re-rate toward the new target.

AlphaScala's Alpha Score for AMD is 58 out of 100, a Moderate rating. The score reflects balanced fundamentals and market positioning relative to peers. More details on the stock's profile are on the AMD stock page.

The stock's move outpaced the Philadelphia Semiconductor Index, which rose 1.6% on the same day. That tells you the reaction was stock-specific, tied to Malik's call.

Malik's new $575 target implies roughly 25% upside from the stock's level before the upgrade. He had previously rated AMD Neutral for months, even as the stock rallied on AI optimism. That long holdout makes the upgrade more significant than a simple consensus catch-up.

The upgrade gives AMD a fresh bull case at a time when the market is looking for differentiation among AI chip plays. The next concrete catalyst is the company's second-quarter earnings report, due after the close on July 30.