Bank of America Just Upped Its Price Target on AMD Stock

Bank of America’s senior analyst Vivek Arya says Akamai’s recent deal with Anthropic makes for another reason to buy Advanced Micro Devices (AMD) shares. In a research note this morning, Arya maintained his “Buy” rating on AMD and raised his price target to $720, indicating potential upside of nearly 15% from here. 

AMD stock has been a lucrative investment in 2026, currently trading at about 3x its price at the start of this year. The chipmaker has recently joined the trillion-dollar club as well. 

BofA’s Bullish View on AMD Stock

Arya cited the expanding role of traditional server CPUs within complex artificial intelligence (AI) deployments for his bullish view. 

According to the analyst, the recent Akamai-Anthropic deal is a prime indicator that high-performance enterprise CPUs remain indispensable alongside AI accelerators.

As generative workflows transition to autonomous agentic AI applications, enterprise computing environments demand much more orchestrating horsepower across the entire hardware ecosystem.

This shift expands the total addressable market for server processors, which BofA projects will hit $211 billion by the end of this decade, positioning AMD shares to capture substantial market share.

What Would Drive AMD Shares Higher

In his research note, Arya also adjusted his longer-term financial modeling for the semiconductor giant to account for sustained data center momentum. 

He raised his calendar year 2027 and 2028 estimates for AMD by 2% and 3%, respectively, citing durable multi-year compute demand. 

Wall Street increasingly views AMD as a complete systems provider, capable of pairing GPUs, EPYC CPUs, and rack-scale networking technologies, rather than a standalone chip designer. 

This structural advantage underpins BofA's expectation that Advanced Micro Devices will continue to capture enterprise workloads as hyper-scalers ramp up their next-generation AI architecture.

That said, at about 95x forward earnings, AMD stock is not inexpensive to own in 2026. 

What’s the Consensus Rating on AMD?

Note that Bank of America Securities is still among the more conservative Wall Street firms on AMD shares. 

The consensus rating on Advanced Micro Devices sits at “Strong Buy” currently, with price targets going as high as $1,250, indicating potential upside of nearly 100% from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.