BofA raised AMD price target to $720 from $620, maintained Buy
What happened
Bank of America Securities analyst Vivek Arya raised his AMD price target to $720 from $620, maintaining a Buy rating, in a note dated September 24 and widely reported September 25. Arya named AMD his top pick in the CPU space, citing rising computing requirements as AI systems become more capable of performing tasks independently (agentic AI). He forecast the server CPU total addressable market will grow from $61 billion in 2026 to $211 billion by 2030 — roughly a 246% increase, with AI applications accounting for $180 billion of it — with AI-server CPU unit volumes more than tripling to 53 million and average selling prices climbing from ~$1,600 to ~$2,600 by decade's end. He raised his AMD earnings estimates for 2027 and 2028 by 2-3% and applied a richer 30x multiple on 2028 earnings (vs 27x previously).
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Start your free 14-day trialWho’s affected
- AMD — the $720 target implies ~14% upside from the ~$630s and makes BofA one of the Street's most bullish voices; the stock hit a record $639 on the call. Positive read-through for the CPU supply chain and cloud/neocloud names exposed to agentic-AI infrastructure; mild competitive pressure read for Intel and Nvidia, since BofA's thesis centers AMD's EPYC position in the expanding server-CPU market.