Bank of America raises AMD target to $720 as server CPU market expands

  • Bank of America raised AMD's price target to $720 and maintained its Buy rating.
  • AMD reported second-quarter revenue of $11.5 billion, up 50% year over year.
  • AMD crossed $1 trillion in market value on Sept. 21 during a chip rally.

Bank of America analyst Vivek Arya raised AMD's price target to $720 from $620 on Sept. 24 while maintaining a Buy rating, citing expanding demand for server CPUs alongside the artificial-intelligence boom. AMD reported record second-quarter revenue of $11.5 billion, up 50% from a year earlier, with CFO Jean Hu attributing the performance to broad-based data center strength. The company also crossed a $1 trillion market value for the first time. Arya's view followed disclosure of a seven-year, $11.6 billion CPU infrastructure agreement between Akamai and Anthropic, although Akamai has not identified the supplier. He forecasts the server CPU total addressable market will grow from $61 billion in 2026 to $211 billion by 2030, an increase of roughly 246%. AMD trades at 57 times next-12-month earnings, compared with 19 times for Nvidia and 73 times for Intel. Its relationship with Anthropic includes up to 2 gigawatts of Instinct MI450 accelerators, EPYC Venice CPUs, Pensando networking and ROCm software in Helios systems, as well as AMD's commitment to invest up to $5 billion in Anthropic. Meta has separately agreed to deploy up to 6 gigawatts of AMD Instinct GPUs and become a lead customer for next-generation EPYC server chips, taking announced GPU deployment commitments across Anthropic, Meta and OpenAI to roughly 14 gigawatts. AMD shares have more than tripled in 2026 and crossed $1 trillion in market value on Sept. 21 during a chip rally. Analysts' targets range as high as $1,250, while Wells Fargo's Aaron Rakers kept his target at $615, saying the Anthropic partnership had been widely expected. AMD also announced up to £2 billion in U.K. investments over five years. CFO Jean Hu has said the AI-chip total addressable market could reach $2 trillion to $3 trillion by 2030, with inference workloads driving much of the expansion.

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Bank of America raises AMD target to $720 as server CPU market expands - CoinPost Terminal