- BofA Securities analyst Vivek Arya lifted his AMD price target to $720 from $620 on Friday, reiterating a Buy rating and naming the stock the firm's top CPU pick.
- BofA projects the server CPU total addressable market tripling from $61 billion in 2026 to $211 billion by 2030, with $180 billion of that total driven by AI workloads.
- The $720 target rests on 30x BofA's CY2028 earnings estimate, up from a 27x multiple previously; the firm also raised its CY2027 and CY2028 AMD EPS estimates by 2-3%.
- BofA models AI CPU units nearly tripling from 16 million in CY2026 to 53 million in CY2030, reaching roughly 1.5x accelerator unit volumes versus about 0.7x today, with blended server CPU ASPs rising from about $1,600 in 2026 to about $2,600 in 2030.
- AMD became the latest semiconductor company to hit a $1 trillion market cap earlier in the week; shares traded near $630.
- BofA simultaneously reiterated Buy ratings on NVIDIA, its top sector pick, and on Intel, grounded in incremental CPU foundry capacity for external customers.
- AMD's most recent quarterly revenue was $11.54 billion, up 50.1% from the prior-year quarter, with EPS of $1.66 topping the $1.62 consensus estimate.
- Insiders sold 213,838 AMD shares worth $105,533,836 in the last quarter, including CEO Lisa Su's sale of 70,000 shares at an average price of $506.80 under a pre-arranged Rule 10b5-1 plan.
Quotes
“Agentic AI requires compute across the system, with CPU latency and task-completion speed increasingly important to GPU utilization and the end-user experience”
“CPUs expand the AI system TAM rather than substitute for accelerators”
“A better framework assesses how many tasks the GPU initiates, how many the CPU can execute concurrently and how quickly results return to the GPU, with rack-level CPU attach potentially more useful than a universal CPU/GPU ratio”