‘Watch AMD Stock Surge,' Top BofA Analyst Boosts Price Target on Strong AI Momentum
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It must be noted that the upward revision came after AMD disclosed plans to resume shipments of its MI308 AI chips to China after receiving U.S. government approval. AMD stock was up 6% as investors were optimistic about this development.
Analyst Sees Data Center Growth
Arya estimates AMD can ship $400–$600 million in data center GPUs per quarter in the second half of 2025 and all of 2026. That adds about $1 billion to AMD's 2025 data center GPU forecast, and $2 billion to 2026 expectations, even with flat year-over-year growth due to local competition.
Further, the analyst is optimistic about AMD's pricing power. The company's MI355X chips are selling for $20,000–$25,000, well above the $17,000 market assumption.
Beyond data center GPUs, the analyst highlighted several other potential growth drivers for AMD, such as share gains in server CPUs against Intel (INTC), and expects growth from embedded systems and future MI400 chips, especially in government-backed projects.
The new $175 price target is based on a 31x multiple of AMD's estimated 2026 earnings, up from 23x previously. Also, Arya noted this remains within AMD's historical valuation range of 13x to 39x, and close to its five-year median of 32x.
Is AMD a Good Stock to Buy?
On TipRanks, AMD stock has a Moderate Buy consensus rating based on 25 Buys and 10 Holds assigned in the last three months. The average AMD price target of $135.97 suggests an upside potential of 12.193% from its current price. In the past three months, shares of the company have gained about 65.6%.
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