BofA Securities raised its price target on AMD to $200.00 from $175.00 while maintaining a Buy rating ahead of the company’s August 5 earnings report. AMD’s stock, currently trading at $173.66, has shown remarkable momentum with a 12.24% gain in the past week alone, according to InvestingPro data.

Shares of AMD jumped 4.34% to $181.2 on Tuesday.

The firm cited potential resumption of China AI shipments in the second half of 2025, which could add $0.7-$1 billion to calendar year 2025 AI GPU revenue and $1.5-$2 billion to calendar year 2026. BofA also noted stronger-than-expected pricing for AMD’s current-generation MI355X GPUs at over $20,000 versus consensus estimates of $17,000. With a market capitalization of $281.57 billion and a robust financial health score of "GOOD" from InvestingPro, AMD appears well-positioned to execute on these opportunities.

BofA expects AMD to report second-quarter sales exceeding $7.5 billion and third-quarter sales above $8.5 billion, compared to consensus estimates of $7.4 billion and $8.3 billion respectively. For calendar year 2025, the firm projects sales over $33 billion and earnings per share above $4.10, versus consensus of $32.2 billion and $4.01. The company has demonstrated strong revenue growth, with a 21.71% increase in the last twelve months. InvestingPro analysis reveals 20+ additional key insights about AMD’s growth trajectory and market position.

The price target increase reflects a higher price-to-earnings multiple of 36x calendar year 2026 estimated earnings, up from the previous 31x multiple, justified by a stronger AI CPU and GPU environment.

Long-term, BofA expects AMD to increase its overall CPU market share to more than 30% by calendar year 2026, up from less than 20% in 2023, while potentially capturing 4-5% of the AI GPU market.

In other recent news, Advanced Micro Devices has seen several significant developments. Erste Group upgraded AMD’s stock rating from Hold to Buy, highlighting the company’s promising growth outlook for 2025, especially in high-performance CPUs and GPUs for data centers. Additionally, Bernstein SocGen Group raised its price target for AMD to $140 from $95, maintaining a Market Perform rating. Bernstein adjusted its revenue and earnings estimates, forecasting Q2 2025 revenue of $7.52 billion and earnings per share of $0.49, slightly above previous estimates but below the consensus.

Citi also increased its price target for AMD to $165 from $145, citing improving sentiment around the semiconductor company, while maintaining a Neutral rating. Mizuho raised its price target to $175 from $152, attributing the increase to the resumption of AI GPU shipments to China following trade negotiations. Lastly, BofA Securities lifted its price target to $175 from $130, maintaining a Buy rating due to stronger-than-expected data center GPU prospects. BofA projects that AMD could add approximately $1 billion to its 2025 data center GPU forecast and $2 billion to 2026 consensus expectations. These recent developments reflect a positive outlook for AMD’s growth and performance in the coming years.