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AMD: Citigroup keeps Neutral rating, raises PT to $215 from $180.
ByAinvest
Tuesday, Oct 7, 2025 2:01 pm ET1min read
AMD: Citigroup keeps Neutral rating, raises PT to $215 from $180.
Citigroup has raised its price target for Advanced Micro Devices (AMD) to $215 from $180, while maintaining a Neutral rating. The move comes amidst AMD's strong performance in the AI chip market and the company's recent partnership with OpenAI. Citigroup's analysts noted that AMD's AI momentum and the OpenAI deal have significantly boosted the company's prospects [2].The OpenAI deal, announced in October 2025, involves AMD supplying OpenAI with hundreds of thousands of AI chips over the next several years, totaling around 6 gigawatts of computing capacity. This agreement is expected to bring in "tens of billions of dollars" in annual revenue for AMD once fully ramped [2]. The first deployments are scheduled to start in late 2026, with OpenAI standing up a 1 GW data center using AMD's forthcoming MI400-series "Instinct" chips [2].
AMD's strong performance in the AI chip market has also been reflected in its stock price. The company's shares surged about 30% in early October 2025 after the OpenAI deal, boosting its market capitalization to over $300 billion and solidifying its rank as the world's third-most valuable chipmaker [2]. Despite the rich valuation, analysts remain bullish on AMD's prospects, with many firms raising their price targets in light of the company's AI momentum [2].
KeyBanc Capital Markets, another investment firm, has also maintained its Sector Weight rating on AMD with a price target of $160.00, ahead of the chipmaker’s upcoming quarterly results on November 4, 2025 [1]. KeyBanc expects AMD to report better-than-expected third-quarter 2025 results and provide higher fourth-quarter guidance, driven by improving traditional server demand momentum and strength in the company’s latest generation Turin processors [1].
While the OpenAI deal and AMD's AI momentum have been positive catalysts, Citigroup's analysts cautioned that investors should remain vigilant. They noted that AMD's stock now trades at 90×+ earnings, a rich price that "leaves little room for error" if growth falters [2]. Additionally, the company must execute flawlessly to justify its hype, as Nvidia still controls ~94% of the AI GPU market [2].
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