Advanced Micro Devices (AMD) is poised for a "healthy" Q2 beat and raise, mainly driven by demand for its central processing units or CPUs and graphics processing units or GPUs, BofA Securities said in a Monday note.

"Overall, we expect upside to Q2/Q3 result/guide," said BofA Securities, noting pricing headwinds from AMD's MI355X GPUs, strong demand for AI/GPU, and potential resumption of China AI shipments in H2, among other drivers.

Should China shipments resume in August, AMD could see up to a $1 billion addition to its 2025 GPU forecast, said the investment firm. In addition, the company's CPU market share could exceed 30% by 2026, from less than 20% in 2023, according to BofA Securities.

AMD is set to release its Q2 results on Aug. 5.

BofA Securities raised its price target on AMD to $200, from $175, while reiterating its buy rating.

Shares of Advanced Micro Devices were up more than 4% in recent Tuesday trading.

Price: 180.73, Change: +7.07, Percent Change: +4.07