Advanced Micro Devices (NASDAQ: AMD), a rival to Nvidia (NASDAQ: NVDA), has received a bullish endorsement from BofA Securities, which maintained its ‘Buy’ rating and raised its price target from $175 to $200.
The new target represents an increase of about 15% from AMD’s last closing price of $173. Notably, the semiconductor giant ended the previous session up over 4% and has rallied 11% over the past week.
The price revision comes ahead of the company’s earnings report, set for August 5.
BofA analyst Vivek Arya cited several catalysts supporting the upgraded outlook. Among them is the potential resumption of AI chip shipments to China in the second half of the year, which could contribute up to $1 billion in sales in 2025 and as much as $2 billion by 2026.
AMD is also benefiting from stronger-than-expected pricing for its MI355X chips, with units reportedly selling for over $20,000, well above the consensus estimate of $17,000.
Other positive drivers include strong cloud-related GPU demand, improving year-over-year comparisons in the PC segment, and steady enterprise interest from firms like Hewlett Packard Enterprise and Texas Instruments.
Despite softer-than-seasonal PC shipment expectations in the second half, Arya noted AMD’s recent strength has been largely price-driven, which offsets the impact of weaker volumes.
AMD earnings expectations
BofA now expects AMD to beat consensus in both Q2 and Q3 earnings, forecasting revenues of $7.5 billion and $8.5 billion, respectively.
For full-year 2025, the firm projects $33 billion in revenue and earnings per share of $4.10, both ahead of current Wall Street estimates.
Looking ahead, AMD is projected to capture more than 30% of the global CPU market by 2026, up from just under 20% in 2023. Its share of the competitive AI GPU space could also grow to 4% to 5%, aided by strategic shifts and manufacturing uncertainties at Intel.
Overall, as reported by Finbold, Wall Street has remained bullish on AMD stock. For instance, on July 10, Goldman Sachs’ James Schneider reiterated a ‘Buy’ rating with a $140 target, while HSBC’s Frank Lee upgraded AMD to ‘Buy’ with a $200 target.
Meanwhile, Citi’s Christopher Danely maintained a ‘Hold’ but raised his target from $120 to $145, signaling improved expectations. Earlier, on July 2, Mizuho’s Vijay Rakesh also maintained a “Buy” and increased his target from $130 to $152.
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