AMD Price Target Raised to $800 by Citi on Meta Muse CPU Demand

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•  06 Oct 2026
 

$AMD Advanced Micro Devices received a price target increase from Citi, which lifted its target from $575 to $800 as Meta Muse changes the chip story. The new target implies upside of about 27% relative to the price on which the recommendation was based. Enthusiasm around Muse from Meta is beginning to change how Wall Street views the chip market. Citi estimates that the shift to personal AI agents could make AMD one of the largest beneficiaries of the next stage of AI.

For the past several years the AI story has focused on the graphics accelerators of Nvidia. The move to personal AI agents adds another large component to the equation: central processors that run virtual machines, browsers, software and work tools while the agent performs tasks for the user. Citi analyst Atif Malik estimates that the central processor market could reach about $300 billion by the end of the decade, with an annual growth rate of about 60%.

The estimate rests on the difference between a chatbot and an AI agent. A chatbot receives a question and returns an answer, while an agent can work for a long time, open websites, run code, handle emails, place orders and connect several services. Every such action requires additional computing resources beyond running the AI model itself.

The direction has already been sharply reflected in chip stocks. In September, AMD, Intel and ARM surged as investors began pricing the possible CPU demand from AI agents, and Intel and ARM jumped 13%. AMD crossed a valuation of one trillion dollars during the period, and the stock has gained close to 195% since the beginning of the year. That rally reflects multiple expansion that already carries a large part of the AI agent scenario.

AMD sits at the center of the story because of the architecture of Muse. The agent runs separate computing environments for users, based on AMD EPYC processors. Each environment receives CPU and memory resources and allows the agent to perform tasks inside a personal cloud computer. As the number of users rises and each user runs more tasks, the demand for processors can grow very quickly.

For Meta, Muse has already become much more than an assistant that answers questions. The company is bringing it into AI glasses and connecting more services to it, so the agent is meant to operate throughout the day and be available from several devices. Meta wants to buy on behalf of users, and Muse makes shopping the next battleground of AI. For chipmakers, such a shift increases the amount of computing required from each user.

Citi estimates that this demand could give AMD a broader base for growth. Lisa Su, the CEO of the company, has already pointed to an intention to significantly increase chip supply in 2027, as data centers have become one of the main businesses of the company in recent years.

On the investor side, the bar of expectations is already high. The sharp rise in the stock prices in a large part of the scenario in which AI agents become widespread in daily use, and AMD will be required to turn expectations into orders, revenue and profits. Earnings momentum now has to validate the move. Even so, Muse adds to the AMD story a market that until a few weeks ago received much less weight on Wall Street: AI agents that receive their own computer in the cloud and consume processing power for hours instead of seconds.

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