Bank of America Boosts AMD Price Target Amid AI Chip Demand
BofA Raises Price Target for AMD
Bank of America Global Research has raised its price target for chipmaker Advanced Micro Devices (AMD). The new target is set at $195. This news comes as AMD shares saw a notable increase, trading up over 2% in premarket activity following the announcement.
Driving Force: AI Chip Demand
The upgrade by BofA Global Research, led by analyst Vivek Arya, is largely attributed to the strong demand for AMD's artificial intelligence (AI) chips. Specifically, the MI300X, a data center GPU, is highlighted as a key product driving this optimism. BofA sees a "multi-billion dollar opportunity" for AMD in the AI sector.
Analyst Confidence
The firm also maintained its "Buy" rating on AMD stock. This continued positive outlook from Bank of America underscores confidence in AMD's strategic position within the rapidly expanding AI market. The focus on the MI300X's potential suggests a significant growth area for the company.
