Citi views AMD AI event as a ‘mixed bag’

Citi analyst Christopher Danely keeps a Buy rating on AMD (AMD) with a $210 price target after the company held its artificial intelligence event. AMD raised its AI total addressable market to over $500B in 2028 along with some more details on its new MI325X AI chip, the analyst tells investors in a research note. The firm continues to expect Nvidia (NVDA) to capture 90% of the AI GPU market, and believes AMD “has a few advantages including more memory, lower prices, and an open ecosystem.” Citi expects AMD to raise its AI GPU forecast from over $4.5B to over $5B when it reports Q3 earnings. It views the event as a “mixed bag,” saying MI300 will be margin dilutive for a while.