Bank of America raises AMD target price, expects its AI revenue to increase by billions of dollars.

Bank of America Securities raised its target price for AMD from $175 to $200 before the release of Q2 financial report, citing strong growth momentum in the artificial intelligence and CPU markets. The new target price still has nearly 13% upside from the current stock price. Bank of America analyst Vivek Arya, who maintains a "buy" rating, expects AMD to gain significant market share in the CPU and AI GPU markets by 2026. Currently, AMD's market share in the CPU market is less than 20%, but Arya predicts that this number will exceed 30% by 2026. Arya particularly highlights the growth opportunities in the GPU business, especially after improvements in the trade environment with China. It is expected that AMD will resume supplying AI GPUs to China in the second half of 2025, which could bring in an additional revenue of $7-10 billion next year.