Advanced Micro Devices (AMD) shares advanced 2.7% on Tuesday after Citi analysts lifted their price target on the chipmaker to $800 from $575, pointing to the growing demand for computing infrastructure driven by agentic artificial intelligence. The revised outlook underscores a broader shift in AI workloads, where autonomous agents are expected to require significantly more processing power than traditional chatbots.
Citi Projects $300B CPU Market by 2030
Citi analyst Atif Malik reiterated a Buy rating on AMD and updated the firm's CPU market model, now expecting the total addressable market to expand from $29 billion in 2025 to $300 billion by 2030. The revision follows the launch of several personal AI agents, including Muse, Dots, Instinct, GrokBot, and GeminiSpark.
Malik argued that agentic AI differs from conventional chatbots because these agents can operate continuously and autonomously execute multi-step tasks, even between direct user interactions. This always-on nature could drive substantially higher token volumes, particularly in use cases like cybersecurity, where agents monitor and respond to threats in real time. As a result, inference and computing demand could rise across both enterprise and consumer workloads.
The analyst highlighted 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.
AMD to Increase Chip Supply in 2027
AMD is also preparing to ramp up production as AI demand continues to outpace 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 elevated for the next few years and noted that AMD needs additional advanced wafer capacity, 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 met with Foxconn and was scheduled to meet Taiwan Semiconductor Manufacturing Co. as part of the effort. AMD is also collaborating with memory suppliers to secure enough components, as memory remains constrained across the industry, including high-bandwidth memory used in AI servers, Su said according to Taiwan's Central News Agency.
Data Center Revenue More Than Doubles
AMD's latest quarterly results highlight the strength of demand for its data center products. Second-quarter data center 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.
The company also expects its Helios rack-scale AI systems to support further growth. These 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.
This article is for informational purposes only and does not constitute financial advice.
