Advanced Micro Devices (AMD) Stock: BofA Raises Price Target to $200 Ahead of Critical Q2 Earnings

TLDR

Table of Contents

Bank of America raised AMD’s price target to $200 from $175, maintaining a “Buy” rating with 12.7% upside potential
Analyst expects AMD’s CPU market share to jump above 30% by 2026, up from below 20% in 2023
AMD set to resume AI GPU shipments to China in H2 2025, potentially adding $700M-$1B in 2025 revenue
Company’s Q2 2025 earnings report scheduled for August 5, with Wall Street expecting $0.48 EPS on $7.41B sales
AMD stock hit 52-week high of $182.31 and gained 46.9% year-to-date on AI momentum and China trade news

Bank of America Securities made waves by boosting Advanced Micro Devices’ price target to $200 from $175. The move comes just days before AMD reports its second-quarter fiscal 2025 results on August 5.

Vivek Arya, the Bank of America analyst behind the upgrade, maintained his “Buy” rating on the stock. The new price target suggests 12.7% upside potential from current trading levels.

Arya ranks as a five-star analyst on TipRanks, placing 102nd out of 9,927 tracked analysts. His track record shows a 64% success rate with an average return of 19.20% per rating.

The timing of this upgrade is strategic. Wall Street expects AMD to post adjusted earnings of $0.48 per share on revenue of $7.41 billion when it reports after market close next week.

Market commentator Jim Cramer described AMD as being “on fire” due to its artificial intelligence push. The company has been making headlines with new product announcements and data center solutions.

CPU Market Share Expansion Drive

Arya’s bullish stance centers on AMD’s growing dominance in the CPU market. He forecasts the company’s overall CPU market share will surge above 30% by 2026.

This would represent a massive jump from AMD’s below 20% market share recorded in 2023. The projected growth reflects AMD’s competitive positioning against traditional rivals.

The analyst highlighted AMD’s pricing power advantage over Intel in key markets. AMD commands roughly 17% higher pricing in the PC market compared to its rival.

In the server chips market, AMD’s pricing premium is even more pronounced. The company charges 64% more than Intel for server processors.

China Trade Relations Boost GPU Prospects

AMD’s graphics processing unit business received a boost from improved trade relations with China. The company expects to resume AI GPU shipments to China in the second half of 2025.

Arya estimates these resumed sales could generate $700 million to $1 billion in additional revenue for 2025. Looking ahead to 2026, the figure could reach $1.5 billion to $2 billion.

The analyst expects AMD to capture 4% to 5% of the overall AI GPU market. This projection factors in the company’s competitive positioning and product roadmap.

AMD’s current-generation MI355X GPUs are commanding premium pricing above $20,000. This exceeds consensus estimates of $17,000 per unit.

The pricing strength demonstrates market demand for AMD’s AI-focused hardware solutions. It also reflects the company’s ability to compete in high-value segments.

Mixed Analyst Sentiment Despite Recent Gains

Not all analysts share Arya’s enthusiasm for AMD’s prospects. The stock carries a Moderate Buy consensus rating on TipRanks based on 26 Buy and 10 Hold ratings.

The average price target of $149.45 implies 15.8% downside potential from current levels. This creates an interesting contrast with Bank of America’s more bullish $200 target.

AMD stock touched a new 52-week high of $182.31 following news of resumed China AI GPU sales and the BofA upgrade. Year-to-date, the stock has gained 46.9%.

Recent product developments include new EPYC server processors and graphics cards. These launches aim to strengthen AMD’s competitive position in key growth markets.

For the third quarter, Arya projects sales of $8.5 billion, exceeding the consensus estimate of $8.3 billion. Bank of America forecasts full-year 2025 sales above $33 billion with adjusted earnings above $4.10 per share, both ahead of analyst consensus expectations.

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