Bank of America Raises AMD Stock Price Target Amid AI Market Expansion
On July 24, Bank of America raised its price target for Advanced Micro Devices (AMD) to $620 from $560, maintaining a 'buy' rating. The upgrade reflects the firm's revised view on AMD’s growing role in the AI market and its transition into full-stack systems solutions beyond GPU sales. The analyst highlighted that AMD is now being evaluated as a comprehensive rack-scale accelerator supplier rather than just a chip vendor. This shift positions AMD more directly against competitors like Nvidia, particularly with products such as the Helios rack entering production. The bank also noted an expanded total addressable market (TAM) for AMD’s compute solutions, projecting over $2 trillion by 2030. Customer partnerships are central to this thesis: Anthropic is set to deploy up to 2 gigawatts of Helios systems starting in early 2027. Additionally, AMD plans a $5 billion investment in Anthropic as part of the deal.
Topics: AI chips AMD Bank of America Price target upgrade Semiconductors