Bank of America raises AMD’s price target, saying AI server demand is still driving growth expectations higher

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BlockBeats news, July 17: Bank of America analyst Vivek Arya raised AMD’s price target, saying that strong demand for AI servers, an increase in EPYC processor share, and improved supply visibility could drive the company to deliver another round of results that exceed expectations.

BofA raised AMD’s price target from $550 to $620 and maintained a Buy rating. The firm believes AMD is becoming a more complete AI infrastructure provider, not just a CPU rebound trade. Its EPYC server CPUs, Instinct AI accelerators, and the upcoming MI455X Helios rack-scale solution could become the core drivers of growth in the next phase.

Arya expects AMD’s Q3 guidance may include the first shipments of the MI455X Helios, and said that if demand and supply execution go smoothly, the company’s quarterly AI revenue by the end of Q4 could reach more than $6 billion to $7 billion. BofA also believes that agentic AI workloads will increase data center CPU demand, further expanding AMD’s opportunity in the server CPU market.

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