$AMD – Citi Raises Price Target to $800 as AI Agents Could Drive a CPU Boom Citi is getting much more bullish on Advanced Micro Devices ($AMD), raising its price target to $800 from $575 and maintaining a Buy rating. The main reason is the growing impact of personal AI agents such as Meta’s newly launched Muse. Citi believes these always-on AI agents could create a much larger demand for computing, memory and networking than traditional chatbot workloads. Citi now sees the 2030 CPU total addressable market at around $300 billion, compared with just $29 billion in 2025. That represents roughly a 60% CAGR, according to the firm. The thesis is that AI agents will constantly retrieve information, run workflows, coordinate tasks and execute processes, creating more CPU workloads alongside GPU inference. AMD is viewed as one of the biggest beneficiaries because of its strong position in server CPUs, while Meta is already one of AMD’s major customers. AMD and Meta also have a previously announced 6-gigawatt multi-year GPU partnership, with the first 1GW deployment expected to ramp from the second half of 2026. The interesting part is that AMD's own management has also been highlighting the same trend. At Citi's September conference, AMD said agentic AI is increasing demand not only for GPUs but also for CPUs because agents need CPUs for workflow execution, data retrieval and orchestration. AMD expects its server CPU business to grow more than 80% year over year in the second half of 2026 and more than 70% in 2027. Why it matters: The AI trade is increasingly moving beyond GPUs. If AI agents become widely used across businesses and personal devices, the amount of CPU compute required to run and coordinate those workloads could become a major growth opportunity for AMD. Bottom line: Citi's $800 target reflects a bigger bet that the AI-agent era could create a massive new CPU market, with AMD positioned as one of the key beneficiaries alongside its growing AI GPU business. #AMD #AdvancedMicroDevices #AI #ArtificialIntelligence #AIAgents #Meta #Muse #CPUs #GPUs #Semiconductors