Citi upgraded Advanced Micro Devices (AMD) stock from “neutral” to “buy” on June 12, 2026. The bank also increased its stock price target for the company from $460 to $575. According to Citi, AMD’s GPU (Graphics Processing Unit) is not fully reflected in the company’s stock price.

Bank Of America also increased its stock price target for AMD from $500 to $560. Bank Of America also maintained its “buy” signal for the stock. According to the bank’s Global Research analyst Vivek Arya, server CPU total addressable market (TAM) will grow to more than $170 billion by 2030. This is a five times increase from the bank’s previous estimation of $35 billion.

AMD Stock Price To Continue Riding The AI Wave

AI stocks have blown up amid a growing demand for AI products. Chip manufactures, in particular, have seen massive upside in the current market environment. Nvidia (NVDA) is the current market leader, while others, such as Micron (MU) are also benefitting from the AI boom. AMD was also invited to the party for its GPU division. The company’s stock hit an all-time high of $542.52 earlier this month.

While the stock market was off to a great start in June, the re-escalation in the US-Iran war and high inflation figures led to a steep correction. However, the recent announcement of a peace deal between the US, Iran and Israel seems have elevated investor sentiment. AMD stock price has risen by 4.73% today, trading at $511.7 at the time of writing.

AMD’s price surge also comes on the heels of the company revealing its Ryzen AI Halo computer. The product is being placed as a competitor to Nvidia’s DGX Spark.

Also Read: Worried About An AI Stock Bubble? Here’s How To Stay Safe

While GPUs have been at the center of the AI boom, CPUs will become increasingly important, according to Intel CEO Lip-Bu Tan. AMD having its fingers on both GPU and CPU markets could greatly benefit from such a development.