Bank of America Raises Price Target for AMD Following Major Revenue and Market Milestone
AMD achieved a historic milestone by becoming the first chipmaker to reach a $1 trillion market valuation. The company reported record second-quarter revenue of $11.5 billion, up 50% year-over-year, driven largely by strong performance in its data center business. Bank of America responded with increased optimism, raising its price target for AMD from $620 to $720 while maintaining a 'Buy' rating. The analyst cited the significance of an Akamai-Anthropic CPU infrastructure deal worth $11.6 billion over seven years as evidence that traditional server processors remain critical despite growing AI accelerator demand. Bank of America forecasts the server CPU market will grow from $61 billion in 2026 to $211 billion by 2030, a surge of nearly 246%. AMD’s current valuation is high at 57 times next-12-months earnings, reflecting strong investor confidence. AMD has also expanded its customer base beyond Anthropic. Meta and OpenAI are now major clients for both GPU deployments and server chips. The company's strategic partnerships include up to $5 billion in investment commitments tied to deployment targets with key customers.
Topics: AMD Bank of America CPU Market Growth Price Target Upgrade