Advanced Micro Devices (AMD) and Intel (INTC), two major players in the semiconductor industry, received higher price targets from Citi as the bank turned more bullish on the future of the server CPU market driven by agentic AI demand. The firm’s top analyst Atif Malik raised his price target on AMD stock to $460 from $358 while maintaining a Neutral rating. Meanwhile, the 5-star analyst lifted his target on Intel stock to $130 from $95 and kept a Buy rating.
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It is worth noting that Malik ranks 3rd out of more than 12,000 analysts tracked by TipRanks. He has a success rate of 80%, with an average return per rating of 46.70% over a one-year timeframe.
Citi Sees Massive Growth in the CPU Market
Citi introduced a new server CPU market model that projects the market could grow from $29.3 billion in 2025 to $131.5 billion by 2030.
The bank divided the market into three segments: general-purpose CPUs, AI head nodes, and agentic AI CPUs. Among them, agentic AI CPUs are expected to grow the fastest, with Citi forecasting a 185% compound annual growth rate through 2030.
By the end of the decade, Citi expects the agentic AI CPU market alone to reach $59.4 billion and account for about 45% of the total CPU market. Meanwhile, general-purpose CPUs are expected to grow to $50.9 billion, while AI head nodes could reach $21.1 billion by 2030.
Why Citi Raised Targets on AMD and Intel
Citi expects Intel to hold about 47% of the CPU market by 2030, while AMD could capture around 34%. ARM-based chipmakers and other competitors are expected to make up the remaining share.
For Intel, Citi raised its target after increasing data center sales estimates and pointing to possible upside from Intel’s ASIC business, including its Mount Evans IPU used by Google (GOOGL) and Anthropic.
Meanwhile, Citi believes AMD could become one of the biggest winners from what it called a “CPU renaissance.” The firm said industry checks suggest AMD may have secured Anthropic as a customer for its MI450 AI accelerator, with a possible announcement expected during AMD’s Advancing AI event in July.
The bank also said AMD’s strong chip performance and manufacturing capacity at Taiwan Semiconductor (TSM) position the company well to benefit from rising AI demand.
Which Chip Stock Is the Better Buy Right Now?
According to TipRanks data, AMD appears to be the more favored stock on Wall Street. The stock carries a Strong Buy consensus rating and an average price target of $449.21, implying about 6% upside from current levels.
Meanwhile, Intel currently has a Hold consensus rating from analysts. Its average price target of $82.35 suggests roughly 24% downside from current levels, reflecting a more cautious outlook on the stock.
