AMD Hits Record High as Citi Lifts Target to $800 on AI Agent Demand

Advanced Micro Devices shares rallied to fresh records Tuesday after Citi analysts raised their price target on the chipmaker to a Street-high $800 from $575, citing expectations that AI agents will drive demand for compute and AMD chips. AMD stock was up 4% at $656 recently, on track to top Friday's record close after setting an intraday record just above $658. The shares have more than tripled since the start of the year. The analysts said they see the CPU market growing to $300 billion by 2030 from $25 billion last year, as AI agents such as Meta's Muse and OpenAI's Dots gain popularity. They called AMD "the key beneficiary of the CPU renaissance." CEO Lisa Su said Tuesday in Taiwan that the company plans to "substantially increase" supply capacity next year to meet "very high demand." Of 12 analysts tracked by Visible Alpha, 11 recommend buying AMD, with a consensus target near $678.