Citi And Bank Of America Turn More Bullish On AMD, Lift Stock Targets On GPU And CPU Strength

Citi upgraded AMD to 'buy' and raised its target from $460 to $575, while Bank Of America lifted its target from $500 to $560. Both banks argue the chipmaker's GPU and CPU potential is not yet fully priced into the stock.

Wall Street's confidence in chipmaker Advanced Micro Devices (AMD) just got stronger. On June 12, 2026, Citi upgraded the stock from 'neutral' to 'buy' and lifted its price target from $460 to $575. The bank's reasoning is straightforward, AMD's GPU (Graphics Processing Unit) strength is simply not fully reflected in where the shares trade today.

Around the same time, Bank Of America reinforced its own bullish stance. It raised its AMD target from $500 to $560 and kept its 'buy' signal on the stock intact.

Server CPU Market Seen Growing Fivefold

According to Bank Of America Global Research analyst Vivek Arya, the real story is not only about GPUs. He expects the server CPU total addressable market (TAM) to grow to more than $170 billion by 2030. That figure is a full five times larger than the bank's previous estimate of $35 billion. In other words, a CPU business long treated as the smaller opportunity could turn into a very large one in the years ahead.

AMD Stock Rides The AI Wave

The relentless demand for AI products has sent AI-linked stocks soaring, and chip manufacturers have captured the biggest gains in this environment. Nvidia (NVDA) currently leads the pack, while companies like Micron (MU) are also cashing in on the AI boom. On the back of its GPU division, AMD has joined the rally too. Earlier this month, the stock touched an all-time high of $542.52.

June began strongly for the market, but the re-escalation of the US-Iran war and high inflation readings then triggered a steep correction. The recent announcement of a peace deal between the US, Iran and Israel appears to have revived investor sentiment. Helped by that mood, AMD shares climbed 4.73% today, trading at $511.7 at the time of writing.

Ryzen AI Halo Takes On Nvidia Directly

The jump in the share price also lines up with a major product reveal. AMD recently unveiled its Ryzen AI Halo computer, a device being positioned squarely against Nvidia's DGX Spark.

Why CPUs Could Matter Even More

GPUs have sat at the heart of the AI boom so far, but Intel CEO Lip-Bu Tan believes CPUs will only grow in importance from here. Because AMD has a firm foothold in both the GPU and CPU markets, it stands to benefit handsomely from exactly that kind of shift.

What this means for you
• For investors: Citi's $575 and Bank Of America's $560 targets suggest analysts see more upside from AMD's current $511.7 price, though chip stocks can also swing sharply lower with the broader market.
• For tech and AI watchers: With the Ryzen AI Halo taking on Nvidia's DGX Spark, the competition could shape the choices and pricing of AI computing hardware going forward.

Questions & Answers

1. What did Citi change about its AMD rating and target?
On June 12, 2026, Citi upgraded AMD from 'neutral' to 'buy' and raised its price target from $460 to $575.

2. What is Bank Of America's new target?
Bank Of America lifted its AMD target from $500 to $560 and maintained its 'buy' signal on the stock.

3. What is the forecast for the server CPU market?
Analyst Vivek Arya expects the server CPU total addressable market to exceed $170 billion by 2030, five times the earlier estimate of $35 billion.

4. When did AMD hit its all-time high?
AMD shares touched an all-time high of $542.52 earlier this month.

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